Guide for Canadian Sellers: Online Arbitrage on Amazon USA 2025

Canadian sellers can tap into Amazon USA’s massive $396 billion market using online arbitrage without crossing the border themselves. Through a North America Unified Account, you’ll access multiple marketplaces under one subscription, while leveraging FBA and US prep centers to handle logistics and reach Prime customers.

Key Takeaways

Amazon USA offers a massive market opportunity with $396 billion in annual sales, making it an attractive expansion for Canadian sellers looking to grow their e-commerce business.
Canadian sellers can easily access the USA, Canada, Mexico, and Brazil marketplaces through a single North America Unified Account without paying separate subscription fees.
Online arbitrage is one of the most efficient methods for Canadian sellers to source products for the US market, allowing remote inventory management without crossing the border yourself.
Using Amazon FBA and US-based prep centers solves many logistical challenges of cross-border selling, giving Canadian sellers access to Prime customers.
Proper financial and logistics planning is essential when expanding from Canada to the US marketplace to maximize profitability.

Why Canadian Sellers Should Expand to Amazon USA in 2025

If you’re a Canadian seller looking to scale your e-commerce business, expanding to Amazon USA in 2025 represents one of the most significant growth opportunities available. The numbers tell a compelling story. While Amazon Canada generates approximately $12 billion in annual sales, Amazon USA towers over this with a staggering $396 billion. That’s more than 33 times the market size!

The scale difference becomes even clearer when comparing population figures. The USA’s 323 million potential customers dramatically outweigh Canada’s 38.9 million. This massive customer base means greater sales potential across virtually every product category. FBA Lead List regularly analyzes marketplace trends to help sellers identify the most profitable opportunities when expanding to new markets like Amazon USA.

While Amazon Canada actually holds a slightly higher market share percentage (41.5% compared to USA’s 37.6%), the sheer volume of the American market makes this difference negligible. What matters more is that Amazon USA has 1.1 million third-party sellers compared to Canada’s 80,000 – indicating both higher competition and vastly greater opportunity.

Setting Up Your Amazon USA Seller Account from Canada

The North America Unified Account System

Amazon has streamlined the cross-border selling process through its North America and Brazil Unified Account system. This powerful tool allows Canadian sellers to manage operations across multiple marketplaces (USA, Canada, Mexico, and Brazil) under a single professional selling plan. The beauty of this system is its simplicity – you pay one subscription fee and gain access to all four marketplaces.

Setting up this unified account is straightforward. Once you register for a professional selling plan, you’ll automatically have the ability to list products across all four marketplaces. The platform allows you to seamlessly switch between marketplaces within your Seller Central dashboard, making inventory and listing management efficient despite operating across borders.

Essential Documentation Requirements

When registering for your Amazon USA seller account from Canada, you’ll need to prepare several key documents:

Business Information: Your legal business name, address, and contact details
Identity Verification: Government-issued ID like a passport or driver’s license
Credit Card: A valid credit card for billing purposes
Bank Account Information: For receiving payments (more on banking options later)
Tax Information: Including your Canadian Business Number and tax IDs

3 Proven Sourcing Methods for Cross-Border Selling

1. Online Arbitrage: The Digital Treasure Hunt

Online arbitrage has become the preferred method for many Canadian sellers targeting the US market, and for good reason. This approach allows you to source inventory without leaving your home, eliminating the need for physical border crossings.

The concept is simple but powerful: find products selling at a discount on one online platform and resell them at a higher price on Amazon USA. For example, you might discover clearance items on US retail websites like Walmart.com, Target.com, or HomeDepot.com that can be resold profitably on Amazon.

The online arbitrage workflow for Canadian sellers typically looks like this:

Research profitable products using price comparison tools or specialized software like Tactical Arbitrage
Purchase products from US online retailers
Ship directly to a US-based prep center
Have the prep center prepare your inventory according to Amazon’s requirements
The prep center forwards your inventory to Amazon FBA warehouses

This method eliminates many logistical headaches. You’re essentially running your entire business remotely, without inventory ever touching Canadian soil. This approach avoids customs complications, reduces shipping costs, and speeds up the entire process.

2. Retail Arbitrage: Finding Local Canadian Gems

While online arbitrage offers convenience, retail arbitrage presents unique opportunities for Canadian sellers. This method involves physically visiting stores in Canada, purchasing discounted products, and reselling them on Amazon USA.

The key advantage is finding uniquely Canadian products that might be in demand in the US market. Items like specific Canadian snacks, health products, or specialty goods often command premium prices in the US due to their limited availability.

However, retail arbitrage presents additional logistical challenges for cross-border selling. You’ll need to:

Research which Canadian products have demand in the US market
Source these products from local retailers
Package them according to Amazon’s requirements
Ship them across the border to US FBA warehouses (or to a US prep center)
Navigate customs and international shipping considerations

This method requires more hands-on work and upfront logistical planning but can yield impressive margins when you identify the right products.

3. Wholesale: Scaling Your Amazon USA Business

For Canadian sellers ready to scale their Amazon USA business, wholesale represents the most substantial opportunity. This approach involves purchasing products in bulk directly from manufacturers or distributors at wholesale prices, then reselling them on Amazon.

The wholesale approach offers several advantages:

Higher profit margins due to bulk purchasing
More consistent inventory availability
Potential for exclusive distribution arrangements
Greater business predictability and scalability

As a Canadian seller pursuing wholesale, you have two main sourcing options:

Canadian Wholesale Suppliers: Partner with Canadian manufacturers looking to expand into the US market. This approach gives you access to unique Canadian products that may stand out in the US marketplace.
US-Based Wholesale Suppliers: Work directly with American suppliers and have products shipped to your prep center or FBA warehouse. This eliminates cross-border shipping on your end.

Establishing wholesale relationships requires more upfront work, including creating a professional business presence, obtaining necessary reseller permits, and developing negotiation skills. However, the long-term benefits make this an attractive option for serious sellers.

FBA vs. FBM: Choosing Your Fulfillment Strategy

Benefits of Amazon FBA for Canadian Sellers

For Canadian sellers targeting the US market, Amazon’s Fulfillment by Amazon (FBA) program offers significant advantages that often outweigh its costs. When using FBA:

Amazon handles all storage, picking, packing, and shipping: This eliminates the need for you to maintain a physical presence in the US.
Your products become Prime-eligible: This is crucial for success on Amazon USA, as the Prime badge dramatically increases visibility and conversion rates.
Amazon manages customer service and returns: This removes the complexity of handling international customer service issues.
Simplified logistics: Once your inventory reaches Amazon’s fulfillment centers, you don’t need to worry about individual order fulfillment or cross-border shipping for each sale.

For Canadian sellers specifically, FBA solves the critical problem of international fulfillment. Without it, you’d need to ship individual orders from Canada to US customers, resulting in higher shipping costs, longer delivery times, and customs complications for every order.

When FBM Makes Sense for Cross-Border Operations

Despite the advantages of FBA, Fulfillment by Merchant (FBM) can be appropriate in certain scenarios for Canadian sellers:

Large or heavy items: Products with high dimensional weight that incur excessive FBA fees may be more profitable through FBM.
Low-velocity items: Products that sell infrequently may accumulate long-term storage fees in FBA warehouses.
Products requiring special handling: Items needing custom packaging or preparation that Amazon’s standard processes can’t accommodate.
Seasonal items: Products with highly seasonal demand patterns might benefit from FBM to avoid storage fees during off-seasons.

If you choose FBM as a Canadian seller, you’ll need to solve several operational challenges including establishing efficient international shipping methods, managing customs clearance for individual orders, and providing timely customer service across different time zones.

Managing Logistics & Shipping Across the Border

Working with US-Based Prep Centers

US-based prep centers are invaluable partners for Canadian sellers targeting the Amazon USA marketplace. These specialized service providers act as your physical presence in the United States, performing critical functions that would otherwise require you to cross the border yourself.

A quality prep center typically offers services including:

Receiving inventory from your suppliers
Inspecting products for damage or defects
Labeling items with Amazon FBA labels
Bundling or kitting products as needed
Packaging according to Amazon’s requirements
Forwarding inventory to Amazon FBA warehouses

When selecting a prep center, consider factors beyond just price:

Location: Choose prep centers strategically located near Amazon fulfillment centers to minimize shipping costs and transit time.
Services offered: Ensure they provide all services you need, including specialized preparation for your product categories.
Technology integration: The best prep centers offer software that integrates with Amazon Seller Central and provides real-time inventory visibility.
Pricing structure: Compare flat-rate per-item pricing versus hourly rates to determine which is most cost-effective for your specific products.

Customs Considerations and Documentation

Moving products across the US-Canada border requires understanding customs procedures and documentation requirements. While prep centers simplify this process, you should still familiarize yourself with key considerations:

Harmonized System (HS) Codes: Every product needs the correct HS code for customs classification, which determines duty rates.
Country of Origin Documentation: You must accurately declare where products were manufactured, which affects duty rates.
Commercial Invoice Requirements: Ensure all commercial documents include required information such as product descriptions, values, and quantities.
De Minimis Thresholds: Understand the US de minimis value ($800 USD), below which shipments enter duty-free.

Financial Management for Canadian Sellers on Amazon USA

Banking Options and Currency Exchange Strategies

Managing finances across borders adds complexity to selling on Amazon USA from Canada. The right banking and currency exchange setup can significantly impact your bottom line. Here are your primary options:

Option 1: Amazon Currency Converter

Amazon offers built-in currency conversion, allowing you to receive payments in Canadian dollars directly to your Canadian bank account. While convenient, this typically comes with less favorable exchange rates and additional fees that eat into your profits.

Option 2: US Bank Account

Opening a US bank account gives you more control over when and how you convert currency. Many Canadian banks offer cross-border banking solutions with US dollar accounts. Popular options include:

TD Cross-Border Banking
RBC Bank US Banking Package
BMO Cross-Border Banking Services
CIBC US Dollar Account

With a US bank account, you can:

Receive payments in USD
Pay US suppliers directly in USD
Convert currency only when exchange rates are favorable
Potentially save 2-3% on each transaction compared to automatic conversions

Option 3: Third-Party Currency Exchange Services

Services like Wise (formerly TransferWise), OFX, or Payoneer often offer better exchange rates than banks or Amazon’s currency converter. These platforms can be connected to your Amazon account for receiving payments and then transfer funds to your Canadian account at competitive rates.

The best approach often involves a combination: maintain a US bank account for operational expenses while using a specialized service for currency conversion when transferring profits back to Canada.

Tax Implications for Cross-Border Selling

Navigating tax obligations is one of the most challenging aspects of cross-border selling. As a Canadian seller on Amazon USA, you’ll need to understand both Canadian and US tax requirements:

Canadian Tax Considerations:

GST/HST: You must report all worldwide income, including US Amazon sales, on your Canadian tax returns. Depending on your sales volume, you may need to charge and remit GST/HST on sales to Canadian customers.
Income Tax: All income earned, regardless of source, must be reported to the Canada Revenue Agency. However, the Canada-US Tax Treaty prevents double taxation on the same income.

US Tax Considerations:

Sales Tax: Following the 2018 South Dakota v. Wayfair Supreme Court decision, most US states require marketplace facilitators like Amazon to collect and remit sales tax. This means Amazon handles most sales tax obligations for marketplace sellers.
Income Tax: As a Canadian seller without a physical presence (nexus) in the US, you’re generally only subject to US income tax on income effectively connected with a US trade or business.
IRS Requirements: You may need to complete Form W-8BEN (for individuals) or W-8BEN-E (for entities) to certify your foreign status and claim treaty benefits.

Working with tax professionals who specialize in cross-border e-commerce is highly recommended. The investment in proper tax planning often pays for itself by preventing costly errors and identifying legitimate deductions and credits.

Advanced Strategies for Canadian Sellers in 2025

1. Leveraging Tactical Arbitrage for US Market Research

In 2025, sophisticated software tools are essential for Canadian sellers competing effectively in the US market. Tactical Arbitrage stands out as a leading solution for identifying profitable online arbitrage opportunities.

This powerful software scans hundreds of US retail websites and compares prices against Amazon listings, identifying opportunities where you can buy low and sell high. For Canadian sellers, this eliminates the need to physically visit US stores or rely on guesswork when sourcing inventory.

Advanced features particularly valuable for Canadian cross-border sellers include:

Product Sourcing: The software can scan entire categories on retailers like Walmart, Target, and Home Depot to find profitable items.
Reverse Lookup: Start with successful Amazon products and find cheaper sources to purchase them from.
Restriction Checker: Automatically verify if you’re eligible to sell specific products before purchasing inventory.
ROI Calculator: Factor in all costs, including prep center fees, FBA fees, and estimated shipping to calculate true profit potential.

While Tactical Arbitrage requires a subscription investment, many successful sellers report that the time saved and opportunities identified make it essential for scaling an online arbitrage business across borders.

2. Capitalizing on Uniquely Canadian Products

One of the most effective strategies for Canadian sellers is selling products that are unique to the Canadian market but in demand among US consumers. This approach reduces competition and allows for higher profit margins.

Examples of successful Canadian product categories in the US market include:

Canadian-made specialty foods: Maple products, specific snack brands, and unique confectionery items often command premium prices.
Canadian health and beauty products: Natural products that aren’t widely available in the US market can be particularly profitable.
Canadian-designed apparel and accessories: Items featuring Canadian designs or themes, especially from boutique brands.
Canadian-authored books and media: Especially those that haven’t secured US distribution.

The key to success with this strategy is thorough research. Use Amazon’s Best Seller Ranks (BSR) to identify Canadian products already selling well, check competition levels, and calculate potential profitability after accounting for cross-border shipping and preparation costs.

3. Expanding to Mexico and Brazil Through Your Unified Account

A significant advantage of Amazon’s North America Unified Account is the ability to easily expand beyond the US market into Mexico and Brazil. In 2025, these growing markets represent substantial opportunities for Canadian sellers looking to diversify their revenue streams.

Amazon Mexico (Amazon.com.mx):

Growing e-commerce market with less competition than the US
Can use the same inventory in US fulfillment centers through Amazon’s North America Remote Fulfillment program
Allows you to reach 126 million potential customers
Requires minimal additional setup beyond translation of listings

Amazon Brazil (Amazon.com.br):

Latin America’s largest e-commerce market
Recently added to the Unified Account system
Emerging middle class with increasing purchasing power
Currently requires separate inventory, but integration is improving

The expansion process is streamlined through your unified account:

Select the marketplace you want to expand to in Seller Central
Create listings for that marketplace (or use Amazon’s tools to copy existing listings)
Set pricing and fulfillment options
Enable remote fulfillment where available

Take Action: Your Amazon USA Expansion Blueprint

Expanding from Amazon Canada to Amazon USA represents one of the most significant growth opportunities available to Canadian e-commerce entrepreneurs. With a market over 33 times larger than Canada’s, the potential return on investment is substantial.

To succeed in this cross-border venture:

Start with online arbitrage as your initial sourcing method to minimize logistical complexities
Use FBA and US-based prep centers to handle fulfillment and customer service
Implement proper financial structures for banking and currency management
Consult with tax professionals to ensure compliance with both Canadian and US regulations
Use software tools like Tactical Arbitrage to identify profitable opportunities
Consider expanding to additional marketplaces once you’ve established your US presence

The path from Canadian seller to international e-commerce entrepreneur is clearer than ever in 2025. By implementing the strategies outlined in this guide, you’ll be well-positioned to capture your share of the massive US market opportunity.

FBA Lead List provides hand-vetted daily leads which allow Canadian sellers to focus on scaling their business.