How To Start A Drop Shipping Business In Canada (Quick Start Guide)

A humongous number of Canadians spend their money online when it comes to buying products such as clothes. The amount being churned out by the eCommerce industry of this country annually is not even funny. Drop Shipping is a game-changer in this field. You manage to make good money from the comfort of your home, never having to take stock of the products that are being purchased off of your site. It is this ability to power through the intricacies of business, that allows you to focus on innovative methods to increase your profits.

Success stories of people who Drop Ship are a-plenty. You will come across many such individuals, if you have not already, who have managed to make significant profits. These are people who make sure that their profits are turned into investments that can be shown off with pride. You do not have to follow the same path, make the same investments, or even purchase the same things. To turn a profit with Drop Shipping, all you have to do is get a good grasp of its principles.

Do not worry, I have talked to and worked with enough people who Drop Ship to help you through the process of setting up shop. My interactions have also helped me learn the success mantras that have been handy for most of these individuals, along with the risks present in the game. Keep reading to get a detailed overview of this venture.

What is Drop Shipping?

A method of fulfilling retail needs, Dropshipping is a process where the online store does not have actual control over the products it sells. The store instead purchases the product from a manufacturer and has it directly shipped to the consumer. This allows for the seller to not handle the actual transaction at all and entirely focus on the profit mechanism involved in this process.

It stands out from the standard model of retailing by not stocking or owning an inventory of the product. The seller, then, is responsible for the reach of the product. They have to look for manufacturers and decide what the share will be in terms of purchasing. The inventory visible on the site also does not need to be limited to a single manufacturer. The seller can always diversify in terms of the products they want to put out in the market.

You can easily take the amount given to you, place the order to the manufacturer, and keep the difference in the selling price that you put vis-a-vis the actual selling price. You get to decide what your share will be considering that you will be undertaking the project of growing the reach of the product.  

What to Sell? 

This is one of the places in your Dropshipping business that will require your complete attention. Creating a store and filling it up with random products will do you no good. You will have to carefully curate what is new and trending while keeping in mind what is it that customers might be looking for at different times. All businesses are based on proper groundwork and research. If you are going to invest your time in this venture, you must have a fair idea about the market as well as your customers. These are two of the biggest tools in any good businessman’s arsenal. 

Considering that a lot of your traffic will be directed through social media sites, you must spend a considerable time on Facebook and Instagram. This is to get a sense of what others might be selling, what kind of trend is currently settling in, and what kind of products catch the consumers’ eye.

It would be beneficial if you also keep an eye out for quality. If that is something that interests you, definitely try one of the products before putting them on sale.

Is Dropshipping an expensive venture?

If you were to go out, rent a space, create an inventory, and then wait for customers to turn up to your physical shop, then it would be an expensive venture.

If you were to hire a web developer to create a website, pay your server and hosting charges, and then wait for traffic to come your way, yes it would be an expensive venture.

For Dropshipping, neither of the two scenarios listed above are important. Instead, you are far away from exhausting yourself physically or mentally when it comes to setting up shop. The internet is a real blessing when it comes to things such as this. You can easily sign yourself on one of the various sites that allow you to rent a space online, and curate your collection to sell. The price is not extravagant, and you can easily pay it off with the profits you make each month. Most such sites offer interesting add ons to attract consumers. Some of them allow consumers to create their cart and check them out at their convenience. Products that have been picked once, will not disappear! They even offer coupon code boxes that allow consumers to access the deals you set for them.

One of my personal favorites is Shopify. With its nominal rates as well as a user-friendly interface, it is perfect for the seller and the consumer. You can use Shopify features to make sure that your shop stands out from the crowd and easily attracts customers.

Is Drop Shipping Risky?

As I have mentioned above, Dropshipping eliminates a lot of risks that are anyways part and parcel of any business venture.

Your investment remains minimal because you do not have to purchase any bulk quantity of stock from the manufacturer.

You do not have to wait for profits to appear if and when your initial stock has been ordered.

In this model, you can quickly gauge if your selection of products is turning in a profit. If it isn’t, at the same speed you can change the selection on your online store.

It is a dynamic process that allows your business to flourish.

Considering that this is an online venture, the biggest roadblock will only be refunding customers their money. For this, you can always plan your earnings accordingly.

Is Drop Shipping Profitable?

Honestly speaking, yes you will be able to make profits. The margin of that profit will be solely dependent on how you carry out your business transactions. You must keep track of the costs you will have to incur while conducting this business.

Once you are in the game, it is important to calculate things like how much money you will be spending on acquiring the product from the manufacturer and how much will you be spending on other forms of advertisements. These are the actual costs of business, and upon this, the condition of your business be decided.

Acquiring products and selling them is where you will be making your profits. You will have to strike a deal with your supplier, and provide their products at a cost, where it meets his needs and leaves money in your wallet. You will advertise manually when you begin in this trade. If you want to expand you must spend a small portion of your profit on buying ad spaces and the likes.

Remember that you will have taxes to pay and make sure that you factor it in while investing your profits. You must have a plan in place before you start actively polishing the contours of this venture.

Nobody becomes a millionaire overnight, it is the process of smart investment and quick capital gains that lead people to move up the ladder of success.

How Do We Start Drop Shipping in Canada?

Now that we are familiar with what Dropshipping is, let us move towards how to start this business while sitting in the comfort of our homes.

1. Plan and Create a Structure

The first order of business is to decide between a sole trader and a company the moment your profit crosses a few hundred dollars. To set up as a company would mean that you pay a formation fee and create a business account in the bank of your choice. On the other hand, if you set up as a sole trader, you will bear the brunt of the entire process on your seld.

Take help from an accountant for either declaration so that you do not miss out on anything of importance while registering yourself. This will save you a lot of time and money in the future. You might have heard that a good foundation is what decides the strength of the institution. 

2. Manage Accounting

This will decide you and your companies’ future in the long run. Make sure that you keep a track of the amount that is coming in, and the amount that you are spending. This includes keeping a log of your purchases and sales. It also takes into account the amount you have spent on advertisements as well.

For this, I would suggest that you create an account on applications that provide dedicated service to things such as this. Wave and MyOB are two such applications that digitize your spending and income by putting them on charts and bar graphs. Connect your banking accounts and cards to keep a complete check on the incoming and outgoing money in your company. If you start doing this religiously, filing tax returns will no longer be a headache.
You will be able to save a lot as well as direct your spending accordingly when it comes to conducting your business.

3. Create your Own Store

My advice on this is to go with Shopify. It does not have any minimum commitment and you can use their free trial to get a feel of how this venture could look like. Shopify has a huge array of templates that you can put to good use to make your store more interactive and fancy. Apart from the few pre-loaded themes, you can opt to buy one made by one of many designers in here.

With its free training and community forum services, it is already a step ahead of everyone else because it infuses the activity with trust and network building. You can start your store in a couple of hours.

Choose an URL and buy a domain name via Shopify, your shop is ready to go.

4. Start Basic

Trust me on this, do not move to specialize in the first instance itself. Test out the market by seeing what is in demand. For this, I would advise you to start a store that caters to the general needs of the public rather than being its niche. This is only because consumers and markets are both volatile. They change their needs and tastes very quickly. Obviously, there is a need for advertisements to shift their notion, but that is for a later stage.

Once you start selling, you can keep track of what is garnering the most amount of traffic and when. If it something that you can narrow down, then definitely move to create your niche.

5. Sell Your Products

For this part, we have to make sure that you simultaneously focus on two things. Firstly, scout, research, and look. You can never spend just adequate time on social media when you are in this business. Constantly surf Facebook and Instagram to see what is trending along with what is needed. Keep an eye out on places such as and Sell The Trends to see the best products available. Use a platform such as Intellygence on your computer to keep a track of these things. Only when you do things like this, will you be able to successfully get good products for your business.

Secondly, smartly advertise. Use Google ads, Facebook, Instagram, and Youtube to market your shop. Make sure that you have a keen eye out for social media marketing. Do not fall for ad spaces on ancient sites. Remember, your products and your shops are only as good as the number of people they are visible to.

Want To Learn How To Do Dropshipping Properly?

Now, a lot of people after reading a little about dropshipping or watching a couple of youtube videos start dropshipping. While some people might get lucky most people will fail. There are a couple reasons for this. Firstly, since this is a low barrier of entry business many people are already doing it.

Meaning it’s already much harder to begin with if you’re a beginner.

Another reason why most people fail is that they just don’t do anything properly. Of course if your new and if you follow some youtube videos showing you simply creating a store then advertising it, you’re going to fail.

There are also people who do all these and then they give up. Then they make videos on youtube saying dropshipping is difficult and it doesn’t work.

Worst of all would be where you go out there and end up losing a lot of money because you’re new to paid ads and you decided it was a good idea to run facebook ads because they showed in a youtube tutorial.

This is EXACTLY why I recommend you get a proper course to learn dropshipping.

Now there are a lot of crappy dropshipping courses on the market made by gurus in their Lamborghini’s claiming you will become an overnight millionaire if you buy their overpriced course with thin content just because they managed to get some sales on their Shopify store.

I have personally taken a lot of these courses and trust me it sucks. What I suggest is buying a solid course which isn’t overpriced or overhyped.

By far the best course on the market today for dropshipping would have to be eCom Elites by Franklin Hatchett.


Well, first off this is an actually affordable course for one. Second, some modules in this course have more CONTENT than some of the many popular dropshipping courses which ask you to pay thousands of dollars just to buy it then they might try to upsell you.

Lastly, this is a course by Franklin Hatchett, he has been doing drop shipping even before it was famous and trending on youtube. He’s been doing dropshipping for over 8 years. He isn’t your typical Lamborghini guru who had like one or two stores successful and then decided to make a course on it.

Try it out for yourself here (There’s a 30-day money-back guarantee so, you can try without losing money! By the way, I will be writing a review eCom Elites very soon!)

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