Drop shipping is becoming more popular in Canada, due in part to the great success Americans have with it and because more drop shippers are now available to Canadians. It’s a wonderful concept for those without a lot of investment capital (or even those who are loaded).
- You don’t have to worry about having products stocked or being stuck with products that don’t sell, because you have no physical inventory.
- You don’t have to bother with shipping supplies because it’s all done for you.
- You can sell in many countries without the exporting hassles.
- You don’t even have to own a website if you don’t want to.
How awesome is that?!
How Drop Shipping Works
Drop shipping is easy as far as the learning curve goes, but it does take work and dedication to make a living with it.
Simply put, You make arrangements with a wholesale supplier or manufacturer to sell their products direct online, as opposed to having an inventory of products in your physical location. You can offer these products on your own website, or via online auctions like eBay, or through a sellers’ market like Amazon.
When a customer orders the product, you pay the supplier the wholesale price to ship it directly to the customer. There usually is no indication that the product came from another company, and many offer branding options to further create the illusion that the product came from your business. Some companies are fully automated, meaning you don’t have to place the order manually or monitor product inventory.
Customer Price – (Wholesale Cost + Drop Shipping Fees) = Your Profit
Getting Started with Drop Shipping in Canada
There are eCommerce solutions specifically designed for drop shipping, including Shopify Ecommerce. Some drop shipping companies have their own website plans available. You’ll also find drop shipping companies that are authorized eBay or Amazon partners, with integrated features if you’re selling in those marketplaces.
Drop Shippers that Work with Canadian Sellers
First, note that Fees may be charged by some suppliers or directories and for this reason, you should read your contract carefully. The fees are intended to cover the shipping service and/or to give you access to wholesale prices on a large number of products (which are usually only available to volume purchasers). Charging a fee is not a red flag, but you should always be on the lookout for scams.
Finding Drop Shippers in Canada
You can make deals with individual companies, but most people go with a directory both for the massive number of products available and the features offered to make your life easier. We’ve listed a few reputable companies here to get you started.
World Wide Brands – Lifetime access to 10,000 drop shippers. The Better Business Bureau (BBB) gives World Wide Brands an A+.
Drop Ship Access – Almost 2 million products, automated ordering, Ebay and Yahoo store integration, and automatic inventory updates so you won’t have to worry about items being sold out. Free trial available. BBB Accredited business since 2006.
SaleHoo Canada – Almost 2 million products, thousands of verified drop shippers and direct shipping manufacturers. If you opt to use their web store you can start selling right away. Free trial available.
Inventory Source – Free access. Ecommerce tools for sellers and online merchants, including inventory automation from over 75 wholesale distributors. BBB members in good standing.
Wholesale2B – Wholesale2B has everything you need and is easy to use. Choose from several plans to sell over 1.5 million products on eBay, Amazon, Google, or on a website that you own or their turnkey site. They ship to most of the World, including Canada, the US and the UK. Free trial available.
For a detailed tutorial about dropshipping in Canada, as well as more suppliers, check out Wholesale Drop Shipping for Canadian Online Sellers.
We welcome your questions or comments below!
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