Did you know that products that sell well on Amazon US might not be in demand on Amazon Canada? That’s why it’s critical to do dedicated product research on Amazon Canada before expanding.
Amazon Canada is a natural next step for many sellers looking to grow from the US marketplace because of its proximity and similarities. But the reality is, there are differences in buyer behavior, competition, and demand that you can’t ignore.
Some products perform well on both marketplaces, but many sellers skip the extra research and assume the US data applies to Canada. This shortcut often leads to disappointing results and wasted investment.
This blog post discusses how sellers can perform product research on Amazon Canada to find high-demand, low-competition niches while avoiding common mistakes. By the end of it, you will know actionable methods, tools, and strategies to select profitable products and maximize your success in the Canadian marketplace.
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Understanding the Canadian Marketplace
When most people think of Amazon, they picture the US marketplace since it’s the biggest and most recognized. However, Amazon Canada is also a growing marketplace that gives sellers access to millions of Canadian shoppers with less competition.
This marketplace is not identical to Amazon US, as the overall market size is smaller but still highly profitable. Canadian customers shop differently, and sellers who pay attention to these habits can find opportunities that many others overlook.
The Difference Between Amazon US and Amazon CA
There are several differences between the Amazon US and Canada marketplaces, and knowing them helps sellers avoid costly assumptions. What works in the US doesn’t always translate the same way in Canada.
| Aspect | Amazon US | Amazon Canada |
|---|---|---|
|
Marketplace Size |
Largest Amazon marketplace |
Smaller but growing rapidly |
|
Customer Base |
Around 40M active buyers |
|
|
Competition |
Highly competitive, saturated |
Less competitive, more openings |
|
Language |
Primarily English |
English + French (bilingual) |
|
Product Demand |
Wide variety, fast-moving trends |
Seasonal and niche-driven |
|
Logistics |
Extensive warehouse network |
Fewer warehouses, higher costs |
Why Product Research in the Canadian Marketplace Matters
If you think doing product research on Amazon Canada isn’t worth the effort, think again. Skipping this step can affect your sales, profitability, and overall success in the marketplace.
Here are the main reasons why product research in the Canadian marketplace is essential:
- Identifies products with strong demand, low competition, and high profit potential.
- Reveals trending products and emerging opportunities in the Canadian marketplace.
- Highlight gaps in competitors’ offerings to help your products stand out.
- Ensures products align with Canadian customer preferences and market behavior.
- Reduces guesswork and increases the likelihood of a successful product launch.
What Methods Can Sellers Use to Do Product Research on Amazon Canada
There are several methods sellers can use to do product research on Amazon Canada, depending on their preference for free or paid tools and how deep they want to go. Below are the key strategies that can help identify profitable products and understand market demand.
1. Using Amazon's Built-in Tools
It’s safe to say that most of the 1.9 million active Amazon sellers are using the built-in tools that Amazon provides to research products and understand customer behavior. These resources give sellers insight into what products are selling and what shoppers are searching for, helping focus on items with proven demand in the Canadian marketplace.
Tools like Amazon Best Sellers, the Search Bar, and Brand Analytics help sellers identify popular products, trending niches, and customer search behavior. Product Opportunity Explorer can also highlight gaps in the market and show demand versus competition before committing to a product.
2. Utilizing Third-Party Tools
Third-party tools, like Jungle Scout, provide deeper insights into sales, competition, and market trends than Amazon’s built-in resources. Sellers can use them to analyze product demand, track competitor performance, and identify opportunities that may not be obvious from basic marketplace data.
These tools work by aggregating data on sales history, pricing trends, inventory levels, and customer engagement. By interpreting this data, sellers can uncover high-demand, low-competition products, estimate potential profitability, and make informed decisions about which items to sell in the Canadian marketplace.
3. Competitor Analysis
Competitor analysis allows sellers to understand what products are performing well and where they can stand out in the Canadian marketplace. By studying competitors, sellers can reduce risks and make smarter product decisions.
This method involves examining competitor listings, reviews, and sales trends to uncover customer pain points and unmet needs. Monitoring pricing, inventory, and seasonal patterns also helps sellers plan strategies for pricing, stock management, and product selection.
4. Understanding Market Trends
Tracking market trends helps sellers anticipate shifts in customer demand and identify new opportunities in the Canadian marketplace. This method reduces the risk of investing in products with low or declining interest.
Sellers can analyze search term popularity over time and compare different keywords to spot emerging trends. Combining insights from Amazon Best Sellers lists with data from social platforms can highlight early niche opportunities and high-demand products.
5. Keyword Research
Keyword research allows sellers to discover what products customers are actively searching for on Amazon Canada. This method helps ensure listings are optimized for visibility and attract the right buyers.
Sellers can brainstorm relevant keywords and analyze search volume and trends to identify high-demand products. Reviewing competitor listings also provides insights into which terms drive traffic, helping sellers improve their own product visibility and competitiveness.
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Common Mistakes in Amazon Product Research
In trying to find the best products to sell on Amazon Canada, sellers can make mistakes that lead to choosing products that won’t really sell. These errors often result in lost money and wasted time instead of generating profits.
1. Skipping Canadian Market Analysis
Some sellers assume that products successful in the US will automatically succeed in Canada, but this can lead to choosing items with low demand or mismatched customer preferences. For example, Canadians are more likely to buy local or Canadian-made products, with research showing that around 45% of Canadian consumers prefer local brands, a trend that cannot be assumed for the US marketplace.
To prevent this, sellers should study Canadian-specific demand, trends, and consumer behavior before making decisions. This includes analyzing sales data, Best Seller Rankings, and search volume for products in Canada, while considering factors like local preferences, cultural differences, and regional demand patterns, which are insights that may differ significantly from the US market.
2. Ignoring Niche Opportunities
Focusing only on mainstream products can make sellers miss profitable niches. High-demand but lower-competition products often go unnoticed without careful research.
Sellers should explore underserved categories and niche markets unique to Canada. Tools like trend trackers and category-specific analysis help identify these opportunities.
3. Overlooking Competitor Insights
Failing to study competitors during research can result in choosing products that are already oversaturated. This can make it difficult to stand out or achieve strong sales.
Sellers should analyze competitor listings, pricing, and sales data to identify gaps and opportunities. Reviewing reviews and performance metrics can also highlight areas where a new product can improve on existing options.
4. Neglecting Seasonal and Regional Trends
Failing to consider seasonal demand or regional preferences can result in products that sell inconsistently. Overlooking these patterns makes it harder to predict sales and optimize inventory.
Analyzing seasonal trends and regional buying behaviors helps identify products that perform well year-round or during peak periods. This ensures product selection is aligned with actual Canadian customer demand, increasing profitability and reducing stock issues.
5. Relying Solely on One Data Source
Some sellers depend entirely on a single tool or data source, which can lead to inaccurate conclusions. Limited data increases the risk of choosing low-demand or highly competitive products.
Combine multiple tools, market insights, and manual research to get a full picture of product viability. Cross-referencing data ensures better-informed decisions and reduces the chance of costly mistakes.
FAQs About Product Research on Amazon Canada
Successfully Expand and Sell on Amazon Canada
Expanding to Amazon Canada takes more than replicating your US strategy. Success depends on understanding the unique Canadian marketplace, researching local demand, and targeting high-demand, low-competition products.
Applying the right research methods allows sellers to make data-driven decisions and optimize their profit margin. Additionally, being mindful of common pitfalls helps ensure your products truly connect with Canadian consumers.
Planning on expanding your Amazon business to Amazon Canada? Reach out to our full-service Amazon agency and let our experts handle product research, listing optimization, and even trademark registration to help your brand succeed in the Canadian marketplace.
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