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 Canada’s 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+.
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.
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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I too am looking for something to do when I retire next year and this sounds perfect. I’m taking early retirement but I’m not ready to stop working yet but I’m totally over working for someone else. TU!
Great site, how do u get all this information?I’ve read through a couple of articles on your site and I really enjoy your writing style. Thanks a million, keep up the good work.
I just started dropshipping candy & cndy making supplies. I stick to the stuff that’s hard to get and I started making sales right away. I sell mostly on amazon because I wanted to test it like you suggested but now I’m planning a website since it’s going so good. I started making up my own kits and so far they do great especially around the holidays. I never dreamed I could have a store without buying a bunch of products and shipping them. It’s almost too easy!!
Going on six months now of drop-shipping on ebay and sales are growing. Learned some hard lessons at first, I should have researched more but I was excited and got ahead of myself. product research especially. I wanted to sell all the things LOL! Profit margins are tight sometimes but if you do a search for the product wholesalers sometimes you can find a better price. It’s all worth it.
Drop shipping is a retail method in which you don’t keep products in stock. Instead, you partner with a wholesale supplier that stocks its own inventory – you transfer customer orders and shipment details to them, and they ship the goods directly to the customer. The biggest benefit of drop shipping is you don’t have to worry about fulfillment or inventory issues.
My father-in-law got me into dropshipping. He’s been doing it for a decade ever since he retired. Having an insider helped me avoid mistakes and I was making money within the first month. I encourage everyone I meet to try it now!
I get the feeling drop shipping is an untapped market but I bet you’ve made a mint on it. Something to look into for 2015 for usre.
I must’ve considered it 20 times in the past few years but never new where to start……….until now. Thanks a million.
I went from knowing nothing about selling online to literally paying the rent with dropshipping in less than a year!! You’ll make mistakes but it’s SO WORTH IT TO KEEP TRYING!!
I started dropshipping in college and by the time I finished school I was making enough money to not job hunt LOL. I’m still doing well with it 8 years later. Just remember nothing is easy even if it sounds like it will be. The harder you work the more money you make just like any other business. It’s fun though & so nice to be your own boss.