Amazon.ca is celebrating its 20th anniversary this year, as well as marking several other achievements and anniversaries of service to Canadians. It’s been 10 years since they launched the first Canadian fulfillment centre in Mississauga, Ontario.
Expansion continued in 2021, with a new local delivery system opening in Dartmouth, Nova Scotia. They’ve become much more efficient and creative in improving delivery times in recent years, including faster delivery to Yellowknife, Iqaluit and Whitehorse.
Five years ago they brought an Amazon Web Services (AWS) Region to Montreal, Quebec. They plan to launch another region in Calgary, Alberta in early 2024.
Canadian small businesses often viewed Amazon as a competitor, until they began selling on the marketplace. Now, it’s small businesses who enjoy the most benefits from Amazon’s online marketplace. Over 40,000 Canadian third-party sellers are on Amazon, with the vast majority being small-medium-sized businesses.
The pandemic has accelerated digital adoption in Canada, and that includes selling on online marketplaces like Amazon. 1.3 million new sellers joined Amazon in 2020 (3,438 per day), according to a 2021 ecommerce trends report published by Divante. As of March 21st, 295,000 new sellers have joined the marketplace.
“The figure equals 3,734 sellers per day, or 155 per hour and two every minute. Based on the current onboarding rate, 1.4 million new sellers will potentially have joined the platform by the end of the year,” says Finbold in their data analysis.
How much are Canadians making on Amazon? Almost 4000 Canadian sellers broke six figures on the marketplace last year (up by almost 24 percent YOY), and 240 Canadian sellers surpassed $1 million (USD) for the first time. In total, the number of sellers who surpassed $1 million grew by over 38 percent.
Fulfillment by Amazon (FBA) became an option for Canadian sellers in 2012. Last year, over half of Canadian sellers used FBA, selling close to 110 million products…that’s 209 products every minute!
There were 17 Amazon fulfillment centres operating in Canada in 2021; four in BC, two in Alberta, one in Quebec and 10 in Ontario. Additionally, there are six Canadian sortation centres, 37 delivery stations, two tech hubs, and three corporate offices (British Columbia, Manitoba and Ontario).
The following infographic summarizes Amazon’s presence in Canada from the small business perspective.
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Melody McKinnon's formal education is in business management, which she enhanced with more than 60 certifications revolving around business, marketing, health, general sciences and writing. In 25 years of working online, she has owned or managed both educational and ecommerce websites. Her book, 7 Recession Proof Online Businesses to Start From Home, is available on Amazon.
Melody has worked with many businesses & brands in a multitude of capacities. She can often be found on CanadiansInternet.com, CanadianFamily.net and AllNaturalPetCare.com, as well as other quality digital publications. Her content has earned reference links from highly-respected websites, magazines and university textbooks.