How To Start Dropshipping In Canada In 2025
Why start dropshipping
Are you sick of getting a full-time job that restricts you in all directions? Are you dreaming of having a profitable business that serves customers all over the world? Do you wish to change your life for the better once and for all? If it’s all about you, start a dropshipping business!
Dropshipping is a business model that is available to everyone regardless of location, education, and so on.
In a nutshell, it gives the entrepreneurs the following benefits:
- No investments = no risks
- No need of background knowledge
- No boss = no bureaucracy
- No extra staff and stuff
- No limits of expanding your business
And this is not the entire story. If you would like to learn more about the concept of dropshipping, keep reading!
How dropshipping works
Why start dropshipping in Canada
Dropshipping in Canada is gaining momentum as more entrepreneurs recognize the potential of this low-cost, flexible business model. With a booming eCommerce market and a strong digital infrastructure, Canada offers the perfect environment for dropshipping businesses to thrive. Whether you’re a seasoned entrepreneur or just starting out, here’s why Canada is a great place to launch your dropshipping venture.
1. Expanding E-Commerce Market
Canada’s eCommerce sector has experienced rapid growth, with online shopping becoming a major part of consumers’ lives. In recent years, Canadians have increasingly turned to online platforms for everything from clothing to electronics. With a population that’s both tech-savvy and open to online purchasing, dropshipping allows you to tap into this growing demand without needing physical inventory.
2. Low Startup Costs
One of the biggest appeals of dropshipping is its minimal financial risk. Unlike traditional retail models that require significant upfront investment in stock and warehousing, dropshipping allows you to sell products without holding inventory. You only pay for products once you’ve made a sale. For Canadians looking to start a business on a budget, this means lower costs, reduced overhead, and fewer financial risks.
3. Access to a North American Market
Canada’s proximity to the U.S. gives Canadian dropshippers a huge advantage. By catering to both Canadian and American customers, you can tap into two large markets simultaneously. Cross-border shipping is straightforward, and many suppliers already have distribution networks in place that make shipping to the U.S. seamless. Plus, with tools like Shopify—headquartered in Canada—it’s easier than ever to manage your store and reach customers across North America.
4. Work-Life Flexibility
Canada is known for its strong focus on work-life balance, and dropshipping fits perfectly into this lifestyle. Because it’s an online business, you can manage your store from anywhere, whether you’re working from a cabin in the Rockies or a café in Toronto. All you need is a laptop and an internet connection, giving you the freedom to work on your terms while pursuing other passions.
5. Diverse Product Opportunities
Canadians value products that cater to their unique needs, from winter gear to eco-friendly household items. With dropshipping, you can quickly adjust your offerings to match seasonal trends or regional preferences without worrying about unsold stock. This flexibility allows you to stay competitive and cater to niche markets that are often overlooked by larger retailers.
Dropshipping in Canada is an excellent opportunity for entrepreneurs looking to start a business with low risk, minimal costs, and high flexibility. With a growing eCommerce market, access to North American customers, and the ability to adapt quickly to consumer trends, Canada offers the perfect environment to build and scale a successful dropshipping business.
Population
Digital buyers
eCommerce sales in 2018
Leading e-retail category
Advantages and disadvantages of dropshipping in Canada
Dropshipping has become a popular business model worldwide, and Canada is no exception. With its growing eCommerce market, strong digital infrastructure, and proximity to the U.S., Canada offers significant opportunities for dropshippers. However, like any business model, dropshipping has its pros and cons. Let’s explore the advantages and disadvantages of dropshipping in Canada to help you decide if it’s the right fit for your entrepreneurial goals.
Advantages of Dropshipping in Canada
1. Low Startup Costs
One of the biggest draws of dropshipping is the low barrier to entry. Unlike traditional retail models, you don’t need to invest in large quantities of inventory or rent warehouse space. You only pay for products after a customer places an order, significantly reducing your initial costs. This makes dropshipping an ideal option for Canadians looking to start a business with minimal financial risk.
2. Access to a Large Market
Dropshipping in Canada allows you to serve both Canadian and U.S. customers easily. The close trade relationship between the two countries, supported by agreements like USMCA (United States-Mexico-Canada Agreement), simplifies cross-border shipping and expands your potential customer base. By tapping into the North American market, you can increase your sales without needing separate operations in different countries.
3. Flexibility and Scalability
Dropshipping offers unparalleled flexibility. You can run your business from anywhere in Canada, whether you’re in a big city like Toronto or a smaller town in British Columbia. As long as you have internet access, your business can operate. Additionally, dropshipping is highly scalable. You can add new products, target different niches, and expand into other regions without worrying about inventory management or storage capacity.
4. Diverse Product Selection
Canada’s diverse population and varied climate open up numerous product opportunities. You can easily adjust your offerings to suit different seasons and regions—selling winter gear in colder months or eco-friendly products to meet the rising demand for sustainable goods. Dropshipping allows you to cater to these niche markets without the risk of overstocking seasonal items.
5. Lower Operational Burden
Since suppliers handle inventory management, packing, and shipping, you can focus on marketing, customer service, and business growth. This hands-off approach to logistics is perfect for Canadians who want to start a side hustle or run a business alongside other commitments.
Disadvantages of Dropshipping in Canada
1. High Shipping Costs and Times
While dropshipping eliminates the need for upfront inventory, it often involves higher shipping costs, especially if you rely on suppliers located outside North America. Long shipping times can also be an issue, particularly if products are sourced from overseas suppliers. Canadian customers are used to fast delivery times from major retailers like Amazon, so slow shipping could impact customer satisfaction and retention.
2. Lower Profit Margins
Dropshipping is a competitive business model, and with low overhead comes lower profit margins. Since many other entrepreneurs may be selling the same products, price competition can be fierce. To maintain profitability, you’ll need to focus on niche products, exceptional customer service, or creative marketing strategies that set your brand apart.
3. Limited Control Over Inventory and Quality
In dropshipping, you’re relying on third-party suppliers to handle inventory and fulfillment. This means you have little control over product quality, stock availability, and shipping accuracy. If a supplier makes a mistake—such as sending the wrong product or missing delivery deadlines—you’ll be the one handling customer complaints, even though the error wasn’t yours.
4. Customer Service Challenges
Since you’re not directly managing the products, handling customer inquiries or returns can be complicated. You’ll need to coordinate with suppliers to resolve issues, which can lead to delays in response times. Providing a smooth customer experience can be challenging, especially when you’re dependent on external partners.
5. Tax and Legal Considerations
Operating a dropshipping business in Canada involves navigating various tax laws, including GST/HST, provincial sales taxes, and import duties if products come from international suppliers. Understanding and complying with these regulations can be complex, particularly if you’re shipping across borders. Failing to manage taxes correctly can lead to legal issues and financial penalties.
What to dropship?
How much can you make with dropshipping?
How far you can go with dropshipping: real-life experience
FAQ
Is dropshipping legal in Canada?
Yes! When you are dropshipping, you are not ‘fooling’ anyone, and you are not breaking any laws. You are simply helping other people receive the items they want - and enjoy the perfect customer service you provide.
However, pay attention to your choice of products. It is illegal to sell branded, copyrighted items, or things like weapons (even their sports or hunting models), knives, smoking mixtures, etc.
How much money do I need to start?
At least $150 is necessary - let’s do the maths.
If you have some technical skills and can assemble and set up a website yourself, you will need around $150.
First of all, you will need to buy a domain name (a good one costs about $10-15, and you will need to pay this fee every year to prolong your registration).
After that, you need a hosting: a server that makes your store info visible to the Internet user. You can use the basic hosting service from AliDropship (‘Silver Plan’) and only pay $69 per year.
Then, you will need to install WordPress, which is absolutely free, and buy AliDropship plugin, which costs $89. It should be enough: WordPress + AliDropship make a proper basis to create a fully functional dropshipping store.
If you don’t have these technical skills, you can order a ready-made store based on the AliDropship plugin. It will be made for you personally by an expert team: the specialists will even add the first products to your store. So, technically, it will be ready to sell items from day 1. The basic ready-made dropshipping store costs $299; together with the annual domain fee, you will have to pay $310-315 to launch your business.
How to choose the store niche?
First, it should be something that you really like - or, at least, know deeply. You will be picking products, making advertisements, and advising customers, so you absolutely need to be a pro in this.
Also, this niche should be popular with buyers and easy to promote online. Here is a complete niche selection guide that will help you!
What country to target?
Living in Canada, you are not limited to your local market. You can serve customers all over the globe, even in the countries of Europe and North America. Remember your store niche and think who might be interested in these products. Where do these people live, most likely? That’s your target region!
Where to find the products?
AliDropship plugin lets you easily import products on your dropshipping website. Basically, it transfers the products’ titles, descriptions and images in a single click. So, all you need to do is browse and find good quality products from reputable sellers.
Alternatively, you can use a database of over 50,000 selected products which are guaranteed to be in high demand. This database is available within AliDropship plugin: you can see it when you go to the Import section of your AliDropship-based store. The best part is that all the products’ titles and descriptions are already edited there, so you won’t spend your own time doing this yourself.
If I sell products, how can I compete with itself?
AliExpress is a large shopping platform where sellers offer everything at once. At the same time, your niche dropshipping store is focused on a specific range of products. Surely, you are more client-oriented than a large-scale store, and this is why buyers will choose you over.
Will my buyers know they are actually buying items?
It’s not likely. Even if they see Chinese names/addresses/characters on the wrapping paper, it won’t tell them anything. Lots of warehouses and manufacturing facilities of the largest global companies are situated in China, so there is nothing strange if a buyer receives a package of the Chinese origin.
Also, you can write your suppliers directly and ask them not to put any promotional materials into the package. Sellers are always glad to partner with dropshipping store owners because this partnership is profitable, so they will be happy to help you.
Will my buyers agree to a long delivery?
Long delivery itself isn’t a problem. Your customers are not buying life critical items from you, so they don’t mind waiting - especially, if you offer them an appealing price and a low-cost shipping.
Besides, you can choose the ePacket delivery method which cuts up the delivery time significantly. With ePacket, it will take the packages 7-15 days to arrive.
What if a buyer asks me for a refund?
Refunds are the responsibility of the original suppliers. Usually, they refund low-cost purchases really quickly, so there is nothing for you to worry about.
How to promote the store?
To make profit from your store, you first of all need to attract traffic to it. There are lots of ways to promote your store online for free, so pick the ones you personally like. Also, read the free marketing tips for dropshipping business: an experienced team brings them to you every week!
Will WordPress or AliDropship limit my activity and charge business fees?
No. The only recurring fee is the domain fee - you will have to pay for it every year, otherwise, your site won’t be visible on the Internet.
WordPress is completely free, and all the AliDropship solutions only require a one-time payment. Whatever AliDropship tool or service you get, you remain a full owner of your business. There are no limits on the amount of orders you can accept, or the volume of profit you make, or the quantity and the content of the products you import, etc. You are your own boss!
Free Dropshipping Guide
