Imagine boosting your Amazon sales by 5% to 25% simply by tapping into Canadian and Mexican markets with minimal effort. This isn't a fantasy—Amazon's North America Remote Fulfillment (NARF) program makes it possible. This article explores how NARF works and shares key strategies to maximize your cross-border sales.
NARF: A Powerful Tool for North American Expansion
The North America Remote Fulfillment program streamlines market expansion for U.S.-based Amazon sellers to Canada (Amazon.ca) and Mexico (Amazon.mx). It allows merchants to maintain inventory in U.S. fulfillment centers while listing products on all three marketplaces—eliminating the need for local storage and shipping. Essentially, your U.S. inventory becomes a shared resource accessible to customers across North America.
Amazon achieves this through unified global SKUs. Previously requiring separate FNSKUs for each market, sellers now manage just one SKU across all platforms. Similarly, a single product listing automatically appears on all three sites.
Enrolling in the NARF Program
Registration is straightforward through the Amazon Seller Central portal. While some sellers receive invitations, others can explore Amazon's official guidelines for selling on Amazon.ca if interested in the Canadian market.
Products typically enroll automatically, but sellers can verify participation by downloading an XML file from the registration page. This spreadsheet identifies enrolled products and allows manual addition of excluded items.
Weighing the Pros and Cons
Like any business strategy, NARF presents both opportunities and challenges that require careful consideration.
Advantages:
- Low-risk market testing: Traditionally, testing Canadian consumer interest required significant investment—new UPCs, listings, and complex logistics with potential double shipping (first to the U.S., then Canada). NARF eliminates these hurdles while bypassing local tax compliance requirements.
- No additional FBA storage costs: Canadian and Mexican orders ship from existing U.S. inventory, avoiding extra storage fees.
- Simplified tax compliance: Cross-border sales often involve complex tax regulations. In Canada, for instance, the 5% federal Goods and Services Tax (GST) combines with provincial taxes in some regions, creating varying Harmonized Sales Tax (HST) rates. NARF removes this burden as Amazon handles sales tax for remotely fulfilled orders.
Considerations:
- Potential sales cannibalization: Some established sellers report decreased Amazon.ca sales after joining NARF, suggesting careful evaluation for businesses already succeeding in these markets.
- Currency management: While inventory is shared, prices must be set separately in USD, CAD, and MXN. Sellers should monitor exchange rates closely and consider using conversion tools with rate alerts to protect profit margins.
Alternative Approach: FBA Export
For broader international reach, sellers can enable FBA Export—making products available worldwide through Amazon.com. Eligible items become purchasable globally, with customers covering additional shipping costs. Activation occurs through the "Fulfillment by Amazon" section in Seller Central settings.
Advanced NARF Strategy: Targeted Advertising
Participation alone isn't enough—strategic promotion is essential. After enabling NARF, replicate successful U.S. ad campaigns in Canadian and Mexican markets through the advertising console. Key tactics include:
- Localized keywords: Research region-specific search terms, including French keywords for Canada.
- Bid adjustments: Modify bids based on market competition—often lower in emerging markets.
- Cultural adaptation: Tailor ad copy to local preferences and language nuances.
- Performance monitoring: Regularly analyze metrics and optimize campaigns accordingly.
Maximizing NARF Performance
Additional strategies to enhance results:
- Listing optimization: Ensure complete, accurate listings with high-quality images and compelling descriptions.
- Customer service excellence: Prompt responses and problem resolution increase satisfaction and repeat purchases.
- Promotional participation: Leverage Amazon events like Prime Day and Black Friday for visibility.
- Competitive analysis: Study rivals' products, pricing, and promotions to identify opportunities.
- Social media integration: Amplify reach through platform-specific content on Facebook, Instagram, and others.
Strategic Considerations
For invited sellers not yet operating in Canada or Mexico, NARF offers a low-cost opportunity to test North American demand. The program provides valuable sales data to inform future decisions about physical inventory placement in these markets. However, success requires active management—particularly in pricing adjustments for currency fluctuations and targeted marketing investments.