10 Hot Product Niches to Sell or Drop Ship Online in Canada ©

One of the most challenging parts of starting an online business in Canada is choosing a profitable niche. We have less competition within our borders than we would in large markets like the US. However, we still need to select products that are in demand, while not being in a saturated niche or easily obtained locally. We also have to stay away from items easily obtained from the US (such as those that ship inexpensively in an envelope).

My Secret Weapon – Drop Shipping

Drop shipping is the perfect way to lower the risk of choosing the wrong niche. With no inventory to worry about, we can test run virtually any product through a website, auction or sellers’ market like Amazon. Drop shipping is a business model in itself, so you may decide to continue with it or bring in the best selling products for resale and continue drop shipping other products. The most popular drop shipping suppliers among Canadians are Wholesale2B and World Wide Brands. For more information about drop shipping in Canada, please read Drop Shipping / Wholesale for Canadian Sellers.

Testing the Waters with Affiliate Programs

You can also test product popularity through affiliate programs. Simply find a merchant selling the product (or something similar) and use direct linking options to see how it sells for you. Obviously, you will need to verify that they ship to Canada if they’re located elsewhere. Your margins will be considerably lower than with drop shipping, but it’s a less intimidating option for some. An easy affiliate network to start with is Share-A-Sale.

My Hottest Online Niches in Canada 10 Hot Product Niches to Sell or Drop Ship Online in Canada

I’ve worked with a lot of products and merchants at various levels for almost 20 years, which gives me unique insights into the online Canadian market. Following (in no particular order) are the most consistently lucrative product niches for me (and those I work for) this year.

  1. Specialty Fashion: Plus sizes
  2. Specialty Fashion: Trendy maternity
  3. Health & Fitness: Natural supplements with a focus on more obscure or trending items.
  4. Smoothie Supplements: Powders (super-foods, protein and so on)
  5. Pets: Natural everything, from food to toys.
  6. Bulk Baking: Unique decorations, cupcake liners, etc.
  7. Novelty Packaging: Unique cellophane bags, favour boxes, reusable gift bags, etc. and related theme packages. Nothing you can find at your average dollar store or department store.
  8. Information Products: eBooks, whitepapers, and online courses. This niche does well for us because we can find info products on virtually any topic, allowing us to slip them into any niche.
  9. Reusable Shopping Bags: It’s a little tougher to find suppliers but the niche does really well if you stick to novelty bags with nice designs.
  10. Seasonal Decorations: This one can easily get out of hand so try to focus on truly unique items. Don’t be afraid to approach local artisans and crafters with consignment-type deals or the like. This is a great category for after-holiday discount shopping if you have room to store items for the next season.

Bonus: A category to watch is products targeting Canadian senior citizens.  The niche has been a risk because although there are a lot of baby boomers in their senior years, they typically aren’t comfortable shopping online.  That’s changing, however, as many learn more about computers and as middle age techies enter their golden years.  We’re seeing a steady increase but not an overwhelming demand… yet.

Tip:  If you need a website with Canadian currency, Canada Post shipping options, etc., please read Checklist: Choosing a Website Host for your Canadian Business.

Comment on Canadians Internet BusinessAny questions about selling online in Canada? Please feel free to ask in the comments below.

✔ You may also be interested in reading:
10 Low-Cost Side Businesses you can Start Online from Home
Finding Suppliers for your Canadian Business
Online Marketplaces for Canadian Sellers
Top Two-Tier Affiliate Programs for Canadians
Free eBook: What Happens in Vegas… Changes EVERYTHING! Wisdom from gurus who make big money online.
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10 Responses to "10 Hot Product Niches to Sell or Drop Ship Online in Canada ©"

  1. NikkiD  January 19, 2017

    You listed “Specialty Fashion: Trendy maternity” as 2 in your list of hot niches however, this is exactly the kind of site I am looking to set up yet can’t seem to find any drop shippers for this niche – especially not in Canada. So just wondering at this made it to, pretty well, the top of your list.

    Reply
    • Admin: Melody McKinnon  January 19, 2017

      It’s a list of the hottest niches for drop shipping OR selling in Canada. Drop shipping is only one way to sell online, in addition to having your own inventory, selling in online marketplaces, etc. It’s also important to note that you can drop ship from American suppliers and have them ship to Canada. When something is hard to find here, people are more willing to pay for additional shipping and exchange on the dollar. The trick is sourcing unique items that can’t easily be found here. The more legwork it takes, the less competition you’ll have.

      Reply
  2. Flowers4eden .  October 20, 2016

    Great read. Thanks so much, for sharing. Ifor I use a US dropshipper and sell in Canada (on ebay or amazon), do I need to register a business name? Or aNY paperwork from the US etc.?
    Also, if I use a US dropshipper and sell on ebay, in the US, what sort of paperwork, would I need for that? Thanks in advance.

    Reply
    • Admin: Melody McKinnon  October 20, 2016

      You can sell online as a form of self-employment. Laws and taxes can vary and they’re always changing, so it’s best to consult with an accountant & lawyer.

      Reply
  3. Lesley Hoskin  September 16, 2016

    Do you need a business number for taxes when you drop ship?

    Reply
    • Admin: Melody McKinnon  September 17, 2016

      When we do it as an online store we use a tax number as the transaction goes through us. If we’re selling elsewhere, like an online marketplace (eBay, etc) the taxes are handled through the platform. If you go with ecommerce software that’s set up for drop shipping it should all be set up for taxes already. Either way, it’s best to check with an accountant as the rules change frequently.

      Reply
  4. Amber  July 16, 2015

    I’m so excited! Hoping to be up & running by fall for Christmas shoppers.

    Reply
  5. Randy O  June 30, 2015

    They’re not so different from anywhere else but there’s lots less competition here and opportunities. Agreed!

    Reply
  6. Cheryl  June 28, 2015

    Thanks for sharing your experience Melady! You can tell you have a lot of it to base your opinions on. I know who to come to with ?’s!

    Reply
  7. Josh Munroe  June 20, 2015

    Most people won’t share this info…you’re very generous or crazy LOL. OK in the spirit I’ll share one of my best, it’s electronics accessories and custom packages of accessories for electronics. Profit margin isn’t too high bt they sell pretty fast. I make the most on the packages. People like to buy everything they need at once especially when they’re not sure about what they need in the first place.

    Reply

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