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 electronics 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
usa dropshippers You Should Know
