Seeking a target country to start a dropshipping business? Then, dropshipping Canada is a wise pick. In the following, we’ve detailed everything about how to start a dropshipping business in Canada on the right foot.

First of all, is dropshipping worth it in Canada? The reasons below are good for answering the doubt.

  • Expanding Canada’s eCommerce market. By the end of 2021, TradingEconomics deems that GDP in Canada amounts to $1670 Billion. At the same time, the Canadian eCommerce market achieves revenue of more than CA$86.52 billion.
  • Numerous online buyers. In 2021, over 27 million Canadians, 72.5% of Canada’s population, purchase goods from online business stores. That means you have a large potential customer base to run your dropshipping business in Canada. In addition, the household disposable income has soared in 2021.
  • Low upfront costs of dropshipping in Canada. The dropshipping model enables you to run a business in Canada without spending on creating items and bulk inventory. The dropshipping suppliers will take care of all of them and reduce the shipping fees.
  • Quick delivery promises. Some dropshipping suppliers help connect you to Canadian suppliers. Therefore, you can expect to ship the item to customers in a short time.

Get interested? Great! To get a full understanding of the whats and hows of dropshipping from Canada, make sure to go through the article till the end.

dropshipping Canada

What Is Dropshipping Canada

Dropshipping in Canada is a low-risk progression of running an online retail store without coping with inventory, packaging, or shipping.

In other words, the dropshipping model doesn’t require you to buy bulk inventory from manufacturers. And it also reduces the fees for a storage unit and additional delivery. You just need to build a dropshipping store with clothing, furniture, or other products. When a purchase is made on your site, you simply need to inform your dropshipping Canada supplier. Then, they’ll source, pack and deliver the products directly to the customers.

All in all, dropshipping from Canada saves the cost as it only requires you to pay for the items offered at low prices when customers place orders. Also, it saves the effort as the drop shipping companies Canada offer automated order fulfillment services.

Is Dropshipping Legal in Canada

You might also wonder that is dropshipping Canada legal? Yes, it’s legal and Canada allows everyone to dropship items assuming you abide by local mandates.

First, when listing products to dropship in Canada, do not sell the illegal and unsafe items, or other products restricted by Canada. Second, provide Terms and Conditions on your online store for dropshipping from Canada.

Third, comply with tax laws and regulations. If you’re an individual seller to dropship from Canada, you’re required to pay the income tax. Additionally, both individuals and businesses need to pay sales taxes for all products in the Canada dropshipping store timely and accurately.

dropshipping from Canada

Do you need a business license for dropshipping in Canada? Yes. The Canadian Revenue Agency (CRA) requires you to register a business license for starting a dropshipping business in Canada. They need it for tracking the operating costs of the enterprises and recording tax revenues.

How to Start a Dropshipping Business in Canada

So, you’ve already known that dropshipping also works in Canada. To take a step further, how to start a dropshipping business in Canada? The newbie may reckon it’s hard to start a dropship business in Canada. But don’t let this discourage you. The following checklist will help build and run a dropshipping store step by step.

1. Decide a niche

To start with, figure out what to sell for dropshipping from Canada. A winning dropshipping product features high-margin profits, low shipping costs, attractive design, and more.

For example, you can run a business on clothing dropshipping Canada. Also, jewelry is a good option. If you don’t know what to sell in Canada, it’s advised to get more dropshipping product ideas via Google’s keyword planner, Amazon Best Sellers list, etc.

2. Build a dropshipping store

After selecting the dropshipping niche, what to do next is to set up a dropshipping store. You don’t need to have a background in programming or pay thousands of dollars to set up your dropshipping business. There are companies such as Shopify, WooCommerce, Wix, eBay, and many more. They have tools to help get started with building a Canada dropshipping store. They are designed for even the most novice of beginners in eCommerce.

3. Select a Canada dropshipping supplier

When dropshipping from Canada, it’s the dropshipping supplier who takes charge of product sourcing, storage, packaging, and delivery. Therefore, it’s an essential step for finding reliable Canadian suppliers for dropshipping. If you have no idea about that, skip to the next part to pick a dropshipping supplier.

4. Product marketing

Okay, you successfully build a dropshipping store and upload the products from the supplier. The next step is to promote the items. You can promote your dropshipping products on social media. For example, Facebook, Twitter, Instagram, etc. If you’re running a dropshipping site, it’s also a good way to do SEO optimization to get more traffic.

dropshipping in Canada

5. Process orders

When a customer purchases the products from your store, you just need to forward the order to the dropshipping supplier. Then, pay for the costs of the products. The dropshipping vendor will then start fulfilling the order including sourcing, packing, and shipping the products to buyers in Canada. Once done, it’ll inform you of the delivery information for tracking the order.

6. Receive payments

It’s also a wise move to offer payment methods broadly accepted by online Canadian shoppers. In terms of receiving payments from your customers, the popular payment gateway in Canada is credit cards like Visa, Mastercard, and American Express. Other payment options also cover PayPal, Moneris, Shopify Payments, and more.

Where Can You Find Dropshipping Suppliers Canada

Now you know the whats and hows of dropshipping Canada. The next step is to decide which dropshipping supplier is available in Canada to choose from. Here is a list of the best dropshipping suppliers, which also contains the local suppliers in Canada. Let’s explore!

1. EPROLO – Free dropshipping supplier

EPROLO is a good start for dropshipping in Canada for free. With over 30 million fulfilled orders since its inception and a wide range of 300 thousand products to choose from, EPROLO would be the best choice for any beginners.

It caters to any genre of eCommerce business targeting Canada, be it fashion, electronics, or pet items. It also offers Print on Demand products for those Canadian clients who are wanting for more creative control over the products. Additionally, the individual stores can benefit from its branding project to get a distinct identity from their competitors with the customized packaging.

how to start a dropshipping business in Canada

Starting a dropshipping business in Canada via EPROLO is easy. First, connect to your dropshipping store built with Shopify, WooCommerce, eBay, or ShopLazza. Next, find, edit and upload the products you’d like to sell in your store. No need to pay for them in advance.

When you receive an order from a Canadian customer, the order will be auto-synced to EPROLO. All that’s left to do is to pay for the cost of products and shipping with only a few clicks. Its automatic fulfillment system will quickly pack the ordered products and ship across the entire Canadian territory ASAP.

2. BrandsGateway

If you are into clothing, jewelry, beauty products, and other fashion accessories but have no idea where to begin, check out BrandsGateway. Although it’s based in the US, it also offers dropshipping services of delivering all kinds of products to Canadian buyers.

BrandsGateway specializes in designer clothes for both males and females. Though, the dropshipping business Canada can also sell shoes, sunglasses, watches, and so on.

For eCommerce integration, it allows dropshipping Canada Shopify, BigCommerce, ChannelAdvisor, Magento, and more.

3. Syncee

If you’re not only into just fashion but also looking for other genres of products, you will find that Syncee is your cup of tea. It connects its dropshipping partners with multiple Canadian suppliers and aims to build a long-lasting partnership with them.

You can browse thousands upon thousands of products that are being supplied from Canadian manufacturers as well as the US, EU, AU, and more. They have pre-vetted suppliers with quality products and fast shipping to all locations in Canada.

Better still, it has an in-app messaging dialog box enabling you to chat with Canadian suppliers. This helps you grasp vital information like product cost, quality, and shipping fees to Canada before working with them.

4. Wholesale2B

Another dropshipping supplier headquartered in Canada is Wholesale2B. It will do all the dropshipping work for you and your eCommerce shop. It has a directory that consists of more than 100 suppliers providing one million products made in Canada, the USA, and so on. The straightforward dropshipping platform enables you to find the needed items within seconds.

What’s more, most Canadian suppliers it teams up with own their local warehouses. This means that you can expect to deliver products everywhere in Canada quickly and safely.

Is dropshipping legal in Canada

5. CJDropshipping

Prefer dropshipping from China to Canada? Then, CJdropshipping is a dropshipping supplier that suits you well. Aside from China, this dropshipping company also has warehouses that are located in Canada, USA, Germany, Britain, France, Australia, Thailand, and Indonesia.

To be clear, CJdropshipping offers you free access to its millions of products in the warehouse and sources the ones that are not included. And it has a connection to the store hosted on Shopify for quick product uploading. Besides, it helps shorten the average shipping time because all the items will be shipped directly from its warehouse in Canada.

6. Printful

Printful is an eco-friendly dropshipping supplier in Canada. It mainly provides retailers who run dropshipping businesses in Canada with an on-demand printing service. If you’re contemplating creating your own online brand with personalized products, they can help you get it done. Furthermore, this dropshipping supplier believes that with printed on demand services, less leftover inventory would be ended up in landfills.

How to dropship in Canada and sell print on demand items is easy with Printful. It’s embedded with simple design tools for you to custom T-shirts, mugs, towels, and so on and upload to the store. Whenever you receive an order, they will automatically receive and prepare the order. Then, it’ll be in charge of printing, packing, and delivering the on-demand items from the warehouse in Toronto, Canada with fast shipping.

7. SaleHoo

The last Canada dropshipping supplier that is worth mentioning is SaleHoo. With thousands of success testimonies from across the world, you can be sure that this Canada-based supplier has helped many find success.

From its Canada dropshipping product catalog, you can choose to sell pet products, clothing, home & garden, and anything that’s best for your store. Meanwhile, SaleHoo also offers courses to help you start up your eCommerce trip and scale the business beyond Canada.

dropshipping Canada

FAQs on Dropshipping in Canada

Q1: How does dropshipping work in Canada?

Just like the USA, India, and other countries, how to start dropshipping business in Canada is easy.

  • 1. Choose a niche, set up a store online, and sell the products.
  • 2. The customer places an order.
  • 3. Your store sends the order to the dropshipping supplier.
  • 4. Supplier prepares the order by sourcing products from the manufacturer and packing.
  • 5. Dropshipping company ships the order under your brand to the customers.

Q2: What are the hottest niches for drop shipping Canada in 2022?

We’ve done full-scale research and comply with a list of top trending products below. You can pick any of them to start your online business in Canada:

  • Fashion industry – The market size of the Fashion segment in Canada is US$14 billion in 2021
  • Shoes – The market size of the Footwear market in Canada is US$6.1 billion in 2021
  • Health & Fitness – The market size of the Health & Fitness industry in Canada is US$4.4 billion in 2021
  • Pens and pencils – The market size of the Ballpoint & Gel Pens segment in Canada is US$4.2 billion in 2021
  • Pets – The market size of the Pets industry in Canada is US$3.3 billion in 2021
  • Toys – The market size of the Toys industry in Canada is US$2.8 billion in 2021
  • Office chairs – The market size of the Office Furniture segment in Canada is US$2.4 billion in 2021
  • Bras – The market size of the lingerie market in Canada is US$2.4 billion in 2021
  • Jewelry – The market size of the Jewelry segment in Canada is US$2 billion in 2021