Header bg
  • section background

    Is It Worth It to Start a Dropshipping Business in Canada?

    Hero bg 2
    is dropshipping worth it canada

    Wondering if the pros of starting a dropshipping business outweigh the cons? We’ve got you covered with this article.

    If you’re looking for a profitable business model that allows you to sell products without holding inventory, dropshipping might be worth considering. This e-commerce strategy has been gaining popularity in Canada over the past few years, with the rise of online shopping and the need for retailers to keep up. But is dropshipping worth it, considering the challenges and competition in the market? In this article, we’ll explore the pros and cons of dropshipping in Canada, as well as tips and advice for those looking to start their own successful dropshipping business.


    Looking To Insure Your Dropshipping Business?

    Get a Free Quote


    What is Dropshipping?

    At its core, dropshipping is a retail fulfillment method where you don’t keep the products you’re selling in stock. Instead, when a customer places an order, you purchase the item (at a cheaper price) from a third party and have it directly shipped to the customer. This means that you don’t need to worry about the costs and logistics of storing and managing inventory. Plus, as a dropshipper, you have the flexibility of running your business from anywhere with an internet connection. All you need is a website or platform to sell your products and a trustworthy supplier to partner with. These are just some of the advantages of dropshipping, which we’ll discuss in more detail in the following sections.

    Challenges of Dropshipping in Canada

    While dropshipping has its advantages, running a successful dropshipping business in Canada can come with its own set of challenges. Shipping is one of the biggest challenges, as Canada is a large country with varying shipping rates and delivery times. Additionally, taxes can be daunting, as dropshippers generally have to deal with international taxes and duties on top of Canadian taxes. Finally, finding reliable suppliers with high-quality products that can be sold at competitive prices can be difficult, especially with the rise of dropshipping competitors. These are just a few of the challenges to consider before starting a dropshipping business in Canada, which we’ll discuss in more detail next.

    Related Read: Business and Insurance Requirements: How to Sell on Amazon


    Insure Your Dropshipping Business with APOLLO

    Get a Free Quote


    Benefits of Dropshipping in Canada

    Despite the challenges, there are a number of benefits to starting a dropshipping business in Canada. One key advantage is the country’s e-commerce market, which has been steadily growing over the last few years. Canadians are shopping more and more online, which provides a great opportunity for anyone selling products online. Additionally, dropshipping businesses don’t require a lot of upfront costs, making it easier to get started than traditional retail models. And as mentioned earlier, dropshipping businesses offer the flexibility to work from anywhere, allowing for a better work-life balance. The benefits don’t stop there, so let’s explore some successful dropshipping business models in Canada next.

    Related Read: 3 Online Marketplaces to Sell Your Products

    Successful Dropshipping Business Models in Canada

    There are a number of successful dropshipping businesses in Canada, ranging from niche products to general online marketplaces. For example, PinkCherry is a dropshipping business that sells adult toys and novelties online. It’s been successful by offering a wide range of products, discrete shipping and competitive pricing. Another example is Wayfair, an online home goods store that also uses a dropshipping model. Wayfair has found success by focusing on providing high-quality products, efficient shipping and excellent customer service.


    Get Insurance For Your Dropshipping Business In Five Minutes

    Get a Free Quote


    Steps to Start a Successful Dropshipping Business in Canada

    If you’re interested in starting a successful dropshipping business in Canada, there are a number of steps you can take to increase your chances of success.

    1. It’s important to choose a niche and find products that are in-demand and that you’re passionate about.

    2. You’ll need to find a reliable supplier that you can build a partnership with. This can involve researching and reaching out to potential suppliers and vendors, comparing prices, and testing products before launching your business.

    3. Create a user-friendly website or platform for your business, offering fast and efficient shipping options, and providing excellent customer service.

    4. To make the most out of your marketing efforts, find the right audience and using effective social media and online marketing strategies is also crucial.

    By following these steps, you can set yourself up for success in the Canadian dropshipping market.


    Looking to Insure Your Dropshipping Business?

    Get a Free Quote


    Importance of Having Business Insurance for Your Dropshipping Business

    One crucial aspect of starting and running a successful dropshipping business in Canada is having the right insurance coverage to protect your business from unexpected risks. While you may not have inventory to worry about, you will still need liability insurance to cover any damages or injuries that may occur as a result of your products. This could include defects in the products, incorrectly listed products, or any claims related to advertising, personal injury or product liability. Without proper insurance coverage, your business could be at risk financially and legally. Investing in business insurance is not only a smart financial decision, but it can also give you peace of mind while running your business.

    Related Read: Do I Need Business Insurance?

    Common Business Insurance Coverages

    When running a dropshipping business in Canada, it’s essential to protect your finances and operations from unexpected events through insurance. As a business owner, you should be familiar with the different types of insurance your business may require to safeguard your finances, your customers, and your company as a whole. Some of the most common types of business insurance coverages are commercial property insurance, business interruption insurance, crime insurance, and general liability insurance. In this section, we will take a closer look at each of these coverages, their benefits and applicability, and why they are important for businesses of all sizes.


    Need Insurance for Your Dropshipping Business?

    Get a Free Quote


    • Commercial Property Insurance: This type of insurance protects businesses from financial loss due to property damage or loss resulting from events like fire, theft, or natural disasters. Commercial property insurance policies often cover buildings, equipment, inventory, and other assets essential for a business’s operations.

    • Business Interruption Insurance: Business interruption insurance is designed to compensate business owners for lost income and extra expenses if their business operations are temporarily interrupted due to a covered event. Covered events can include natural disasters, fires, or other perils, and this coverage is essential for ensuring continuity of operations in the face of unexpected events.

    • Crime Insurance: Crime insurance offers protection from losses resulting from criminal acts. This coverage is important given that businesses can be vulnerable to a variety of criminal activity, such as theft, fraud, embezzlement, or forgery. Crime insurance can provide coverage against financial loss due to these criminal acts, thus safeguarding a business’s finances.

    • General Liability Insurance: This type of insurance protects businesses from third-party legal claims resulting from injuries or property damage that occurred on the business premises. General liability insurance can also cover advertising injuries, such as defamation and invasion of privacy. Without coverage, businesses can face significant legal expenses that they might not be able to bear, sometimes resulting in bankruptcy.

    These are some of the most common types of insurance coverages required by businesses, irrespective of their size and nature of operations. As a dropshipper, choosing the right mix of insurance policies can help you protect your finances, consider your exposure to risk, and meet the legal requirements all businesses must meet.

    APOLLO offers business insurance that’s tailored to your unique needs. Get a free quote in less than five minutes and we’ll send your new policy documents right to your inbox.

    Looking to learn more about getting insured? Read our article Everything You Need to Know About Insuring a Company to find out more.


    APOLLO Has You Covered

    Get the protection you need in minutes with custom Business Insurance from APOLLO.

    Get a Free Quote


    Originally published May 4, 2023, updated August 25, 2023

    Back to APOLLO Magazine
    Share this article

    Get Tenant Insurance in less than a minute

    Get no-nonsense coverage that's the best value for your money. Purchase policies from your computer or phone, receive your documents instantly, and save when you buy online.

    Get a free quote

    4.7 rating

    Google Logo

    Get Tenant Insurance in less than a minute

    Get no-nonsense coverage that's the best value for your money. Purchase policies from your computer or phone, receive your documents instantly, and save when you buy online.

    Relevant articles

    marketing ideas for small business Canada

    17 Marketing Ideas to Promote Your Business

    does tenant insurance cover damage to landlord’s property

    Can a Landlord Make You Get Tenant Insurance?

    scope of tenant insurance canada

    What Do You Need for Tenant Insurance?

    Pros and Cons of Hiring a Real Estate Agent for Rentals

    Pros and Cons of Hiring a Real Estate Agent for Rentals

    section background
    section background

    Getting insured is as easy as 1 - 2 - 3

    Tell us (very little) about yourself
    1

    Tell us (very little) about yourself

    Just tell us your address, your name, email and phone number. And that's it. We'll give you a price in less than a minute.

    Pay online easily and securely
    2

    Pay online easily and securely

    You can choose to pay monthly or save money by paying for the entire year in one easy payment.

    Get your documents in your inbox - instantly
    3

    Get your documents in your inbox - instantly

    As soon as you complete your purchase, you'll find your proof of insurance and policy documents waiting for you in your inbox.

    Get covered today - it couldn’t be easier

    We’ve provided more than 1,000,000 quotes to Canadians just like you. Give it a try!

    Google Logo

    Reviews

    4.7 rating

    1,781 reviews

    view all

    Across Canada

    Contact Us
    Apollo logo

    © 2024 APOLLO Insurance Solutions Ltd.

    111 Water Street, Unit 210, Vancouver, British Columbia, V6B 1A7

    APOLLO Insurance Agency Ltd. (o/a APOLLO Brokerage in the province of Ontario only) is a licensed retail brokerage, offering our clients with a comprehensive set of insurance solutions to meet their individual needs. APOLLO Insurance Agency Ltd. maintains necessary corporate licensing in provinces across Canada. Availability of products and service depends on licensing and product availability. The information that appears on this page is provided for information purposes only. Advertised products and prices are not guaranteed and vary based on insurance provider and/or insurance company's discretion and product availability.

    Transparency and Disclosure: APOLLO Insurance Agency's role is to provide you with exceptional service and the best insurance products that suit your needs. As a licensed retail brokerage, our compensation is based on a commission basis already built into your insurance premium and varies based on the product purchased through our platform. For a description of how APOLLO Insurance Agency is compensated and how this is calculated, please refer to our Compensation Disclosure document. For consumers in Ontario, please review the RIBO Conduct Fact Sheet and the RIBO Conduct Guidance document.