Unlocking New Markets: Expanding Your Amazon Business to Canada, Mexico & Brazil

Expanding your business beyond the United States can open doors to millions of new customers across Canada, Mexico, and Brazil. At the Amazon Accelerate conference, Amazon experts Andrea Michahelles, Pram Pramoth, and Idir Stoutah shared actionable insights on how sellers can take advantage of Amazon’s tools to reach these booming markets in the Americas with minimal effort. Here’s a comprehensive guide on how to unlock these new markets and grow your business.

Why Expand into Canada, Mexico, and Brazil?

The Americas represent over 600 million potential customers, with Canada, Mexico, and Brazil comprising nearly two-thirds of that population. As close neighbors to the U.S., these regions offer a unique growth opportunity for sellers looking to expand incrementally. Canada, Mexico, and Brazil each have unique benefits and substantial online markets, making them high-priority options for U.S.-based businesses seeking regional expansion.

Canada: Low Complexity, High Growth Potential

Why Canada? Canada, with 37 million people and a similar buying behavior to the U.S., provides a straightforward transition for U.S. sellers. Canadians embrace Amazon, with 85% of the population accessing the platform monthly, making it the top online retail destination in Canada. The cultural and geographical proximity means sellers can replicate much of their U.S. strategy, while reaching new audiences with minimal adjustments.

How to Expand to Canada

1. Unified North American Account: With Amazon’s North America unified account, sellers can list products in Canada, Mexico, and Brazil simultaneously.
2. Fulfillment by Amazon (FBA): Amazon offers In-country FBA in Canada, enabling sellers to offer fast, Prime-eligible shipping. Remote Fulfillment with FBA (NARF) also allows sellers to fulfill Canadian orders directly from U.S. inventory, streamlining cross-border logistics.
3. Listing Optimization: By leveraging Amazon’s Build International Listings (BIL) tool, sellers can easily duplicate U.S. listings and content for the Canadian market.
4. Regulatory Compliance: A non-resident importer account with a Canadian business number ensures sellers operate legally in Canada.

Pro Tips for Success

• Use A+ content and sponsored ads to boost conversion rates in Canada.
• Opt for the FBA New Selection program to test new products with minimal risk.

Mexico and Brazil: Capturing the Latin American Market

Why Mexico and Brazil? Mexico and Brazil are Latin America’s largest e-commerce markets. With a combined population of over 340 million and an increasing number of online shoppers, these regions are ripe for growth. Each boasts a large base of internet-savvy customers eager for international products.

Opportunities by the Numbers

• Mexico: 127 million people, with 56% shopping online in 2024. The top categories include electronics, fashion, and beauty.
• Brazil: 214 million people, with 57% shopping online in 2024. High-growth categories include fashion, electronics, and beauty.

Key Steps for Expansion to Mexico and Brazil

1. In-country FBA for Mexico: Ship products to Amazon’s local fulfillment centers for Prime delivery.
2. Remote Fulfillment (NARF): With Amazon’s Remote Fulfillment program, sellers can leverage their U.S. inventory to serve both Mexico and Brazil.
3. Fulfillment by Merchant (FBM): Sellers maintain control over their inventory and shipping, using their U.S.-based facilities to fulfill orders in Mexico and Brazil.
4. Compliance and Tax Registration: Sellers should ensure products meet local regulations and consult Amazon’s Service Provider Network for assistance with tax ID and import documentation.

Advantages of Selling in Mexico and Brazil

• Unified North American Account: You can expand to Mexico and Brazil without needing new documentation or accounts.
• Localized Support: Amazon provides language support in Spanish and Portuguese, easing communication with customers.
• High E-commerce Growth: Both Mexico and Brazil are among the fastest-growing e-commerce markets in Latin America.

Amazon Global Remote Fulfillment with FBA (NARF): A Game-Changer for U.S. Sellers

For sellers looking to enter international markets without holding inventory locally, Amazon’s Global Remote Fulfillment with FBA is a seamless solution. This program allows U.S.-based sellers to use existing U.S. inventory to fulfill orders across Canada, Mexico, and Brazil, giving them access to 233 million Amazon customers in North America alone.

How Remote Fulfillment Works

1. Automatic Enrollment: Sellers with a professional North American unified account can enroll in NARF through Seller Central in one click.
2. Automated Listings: Amazon replicates U.S. listings across Canadian, Mexican, and Brazilian marketplaces, adjusting prices to account for currency and tax variations.
3. Localized Shopping Experience: Customers see products in their local language and currency, with delivery times ranging from 5–7 days (Canada and Mexico) to 16–20 days (Brazil).
4. No Additional Tax ID Needed: Amazon handles duties and taxes, streamlining the logistics for U.S.-based sellers.

Key Benefits of Remote Fulfillment

• Prime Shipping: Prime-eligible items retain their Prime benefits, attracting loyal customers.
• Cost-Effective Expansion: Sellers avoid the complexities of setting up local warehouses while expanding reach.
• Comprehensive Support: Amazon manages customer service and returns, simplifying cross-border operations.

Tips for Maximizing Sales in the Americas

Expanding to Canada, Mexico, and Brazil is just the beginning. To maximize sales, keep these strategies in mind:

• Optimize Listings: Use Amazon’s A+ content, images, and enhanced descriptions to boost conversion rates.
• Invest in Advertising: Run campaigns in each marketplace to increase visibility, leveraging Amazon’s ad tools to target region-specific trends.
• Monitor Inventory: Keep stock levels updated to avoid out-of-stock situations that could negatively impact customer satisfaction.
• Test Demand with NARF: Use Remote Fulfillment to assess demand in new markets, then consider transitioning to in-country FBA if local demand grows.

Conclusion

Expanding to Canada, Mexico, and Brazil opens a wealth of opportunities to grow your business and reach millions of new customers with minimal investment. Whether you choose to start with Canada’s easy transition or tap into the vibrant markets of Mexico and Brazil, Amazon’s North America unified account and Remote Fulfillment tools provide everything you need to navigate international expansion smoothly. Start leveraging Amazon’s global tools today to scale your brand across the Americas with confidence!