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. Check out The Best Affiliate Program Networks for Canadians for more options.

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 A Canadian Guide to Finding the Best eCommerce Platform Software and 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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18 Responses to "10 Hot Product Niches to Sell or Drop Ship Online in Canada ©"

  1. Adnan Iqbal  July 5, 2017

    I really appreciate for helping the peoples from this website and guidance for new entrepreneurs

    Reply
  2. Stephen Burt  June 19, 2017

    Hi Melody;
    Thanks for creating a great site with great information.
    If you use Green Geeks and have an ad for Wealthy Affiliates do they use them as well?
    I am confused about whether to just get another host like I had (but with Canadian servers) on a single plan or a larger plan since we are anticipating an explosion in volume in and out and don’t know hosting like you do and talking to the sales team is not always the best source whereas you are independent.
    Any thoughts will help as I don’t want to have a big jump that my plan can’t handle and lose participants.
    Want to be on our board of advisers?
    Thanks, Stephen
    PS I filled out the info below and it didn’t like my URL but it is my URL and it works.

    Reply
    • Melody McKinnon  June 19, 2017

      Hi Stephen,
      I’m not sure what you mean about GreenGeeks & Wealthy Affiliates. They’re unrelated. You might find our website hosting checklist helpful when making your hosting choice. If you start out with unlimited hosting like GreenGeeks you’ll be OK for while. They’ll let you upgrade when you need to but they won’t bother you about usage until you’re over a generous average (how they determine “reasonable use” for their basic unlimited plan). It sounds like an exciting endeavor, wishing you all the best with it.

      Reply
  3. Mark  April 27, 2017

    Great for your detailed instructions, I will apply it for my hot product search

    Reply
  4. Javeeth  April 23, 2017

    Hi Melody,

    I am India and I have an Import/Export firm in back home.I am planning to import the goods from India which is high demand and good profit for my firm. I have all the licences to export (Including perishable goods). Could you please advice in which item I can focus and do my R&D? Your help is highly appreciated! Cheers!

    Reply
    • Admin: Melody McKinnon  April 24, 2017

      That’s going to take some research to see what works for you. Any of the above niches should serve you well. Good luck!

      Reply
  5. Deb  February 22, 2017

    This was some great advise for a beginner such as myself…thanks for the advise:)

    Reply
  6. Selena  February 16, 2017

    I guess these are the product list which is not so outdated even now. Many of the products are still hot in online business.

    Reply
  7. 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
  8. 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
  9. 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
  10. Amber  July 16, 2015

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

    Reply
  11. Randy O  June 30, 2015

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

    Reply
  12. 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
  13. 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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