In the recent past, the term drop shipping in Canada has gained a lot of popularity, and there’s a good reason behind this. Drop shipping provides one of the easiest ways to start an online business in Canada.

Drop shipping is a form of online business where a store sells products without having to keep the products in stock. Instead, when customers make an order, the store places a similar order from a third party and has the product shipped directly to the customer. With this model, the store doesn’t see or handle the products it is selling.

The Basics of Online Business in Canada

Anyone can start and grow a successful online business in Canada. While there are many different online businesses, there are some basics that you have to follow if you want to start an online business in Canada.

First and foremost, you need to identify a need and find a way of filling it. You need to have a website to sell your products or services. Finally, you need to drive traffic to your website, which you can then convert to customers.

Before starting your business, you also need to get conversant with the laws and regulations that affect online businesses to void finding yourself on the wrong side of the law.

How about to Start a Drop Shipping Business in Canada?

If you want to start drop shipping in Canada, this is the right time. The online market has been growing steadily, and you can expect this growth to continue.

In 2017, the ecommerce retail sector in Canada made almost 29 billion Canadian dollars in revenue, up from 18.3 billion in 2016. In 2018, the number of Canadians browsing and searching for products online is expected to hit 22.5 million, up from 19.5 million in 2013.

With such kind of growth being experienced in the online shopping market, this is definitely a great time to start dropship phone cases in Canada.

Why is Dropshipping Better Than Wholesale in Canada?

There are a number of reasons why drop shipping is better than wholesale in Canada.

First, since you do not have to stock products, you can start drop shipping with very little capital.

Second, drop shipping is easy to get started, since you do not have to deal with handling and shipping products. Your overhead is also lower since you can run your drop shipping store from your laptop, with monthly costs running less than $100. The fact that you can run your store from your laptop means that running a drop shipping business is location independent. You only need an internet connection.

Finally, with drop shipping, you can easily offer a wide selection of products, and scaling is equally easy.

Risks of Dropshipping

Despite the above advantages, drop shipping has its risks too. Drop shipping is highly competitive, therefore the margins are usually very low.

Sometimes, keeping track of inventory can be a challenge, especially when you are using multiple suppliers. Using different suppliers will also complicate shipping and lead to higher costs. Finally, you will also be blamed for any supplier errors, since customers do not know that you are using a drop shipper.

Also See: Best dropshippers usa You Should Know