Dropshipping in Canada is selling a product you do not keep on a shelf. The supplier ships it to the buyer, usually after you have paid the supplier. It suits someone who can describe one product, answer a customer, order a sample to their own address, and pay a store plan while sales are still uncertain. It does not suit someone who wants a store that runs itself, or who cannot name a delivery window they have tested.
A store you stock yourself is how to start a Shopify store in Canada. The plan budget, without the dropshipping-specific risks, is Shopify store startup costs. Why this model shows up on “skip it” lists is overhyped side hustles.
Who does dropshipping in Canada suit?
Dropshipping in Canada suits people who already know the product well enough to write an honest page, and who can wait for a supplier they have tested. A useful test is whether you can say, in one sentence, what the buyer receives and how many days your sample took.
It is a poor fit if the product is “whatever is trending,” if a monthly plan would hurt before the first order, or if you cannot handle a refund the supplier refuses. People who need money this month should price a service they deliver themselves. The hour count behind a $1,000 target is which side hustles can reach $1,000 a month.
What does dropshipping cost to start in Canada?
Dropshipping costs the checkout plan, the card fee, the supplier’s price, and anything you spend to get a buyer. Ads are optional and unpriced here, because ad platforms do not publish a Canadian cost per sale for a new store. If you turn ads on, log the spend. It makes the month worse until orders cover it.
Shopify’s Canada pricing page is the plan source. As published there, Basic is $49 CAD a month, or $37 CAD a month if you pay yearly. The page describes a 3-day trial and then $1 a month for 3 months on many plans, after which standard pricing applies. Online standard card rates on Basic are 2.8% + 30¢ CAD. There is no setup fee on the plans described there. A third-party payment provider has a separate fee that depends on the plan. Confirm every figure before the trial ends. The $1 offer is not the cost in month four.
Shopify is one checkout. You may not need it. A single object you can hand to a buyer is reselling, with no monthly plan. A design printed after the order, which is a cousin of not holding blanks, is print-on-demand.
| Cost | What is published | What you still have to price |
|---|---|---|
| Basic plan | $49 CAD/month, or $37 CAD/month yearly | Whether you will still want the store after the intro offer |
| Card rate on Basic, Shopify Payments | 2.8% + 30¢ CAD | The rate on the day you subscribe |
| Supplier and ship | Not on Shopify’s page | The supplier’s own price, including a sample to you |
| Ads | Not a Canadian average this guide can cite | Whatever the ad account shows |
| Duty and GST at the border | Commercial imports are generally subject to 5% GST and possibly duty | Who the importer is on that shipment |
Illustrative example
Teaching sketch. The selling price and the supplier’s price are assumptions. The plan and the card rate are the published Basic figures. This is not a quote, a forecast, or a typical store.
Suppose one product is listed at $40 CAD and the supplier charges an assumed $18, with an assumed $8 to ship. Card fee at 2.8% + 30¢: 0.028 × $40 = $1.12, plus $0.30, which is $1.42. Left after those three lines: $40 − $18 − $8 − $1.42 = $12.58. The Basic monthly plan is $49. One order does not cover the plan: $12.58 − $49 = −$36.42 for the month, before ads, before a refund, and before tax set-aside.
Four orders at the same assumptions: 4 × $12.58 = $50.32, then $50.32 − $49 = $1.32 before ads. The plan is the hurdle. A yearly plan at $37 changes the subtraction and still assumes those four orders exist. Do not copy $40, $18, or $8. Read the supplier’s invoice.
What risks do Canadian dropshippers commonly hit?
Canadian dropshippers commonly hit a delivery date they did not test, a refund the supplier will not match, and a border charge nobody mentioned on the product page. Order one sample to your own address before you promise a window. If the sample is late, the customer’s order will be late.
If you refund the buyer and the supplier does not refund you, the loss is yours. Read the supplier’s return page before you write a policy that is more generous than theirs, or decide on purpose to be more generous and price that in.
The CBSA’s commercial import guide is the border starting point. Its 2026 commercial-goods note says goods imported for sale or for a business’s use are commercial goods, that importers need a CRA business number and the CARM Client Portal, and that goods are generally subject to 5% GST and potentially to customs duty based on tariff classification, origin, and value. A shipment the supplier sends straight to your customer can still make the buyer the person who pays at the door. A shipment you import and then reship can make you the commercial importer. The supplier’s shipping terms say which one you are selling. Do not promise “no surprise fees” until you have read them.
The Competition Bureau’s page on false or misleading representations is why a borrowed lifestyle photo and a fantasy shipping time are not a marketing tactic. Use a photo of the sample you received, or say you have not photographed the finished goods. This is not legal advice.
A turnkey store sold with a guaranteed income, or a request to pay before you can “unlock” profit, is a scam pattern. The list is side hustle scams in Canada.
How do you test dropshipping in Canada without betting a season?
Test dropshipping in Canada with one product, one sample, and a stop date. Do not open a catalogue of fifty.
Step 1: Pick a product you can describe after holding it
If you cannot order a sample, you cannot check the quality or the transit time.
Step 2: Read the supplier’s ship time, return rule, and who pays duty
Write those three lines on the product page in plain language, or do not list the product.
Step 3: Price after the plan, the card fee, and the supplier
Use the sketch above with your numbers. If one order cannot exist without ads you have not measured, the test is the ads account, not a feeling.
Step 4: Use a checkout you understand
Shopify is optional. Confirm the live price. A marketplace listing is the smaller test if you only have one object.
Step 5: Set a stop date
If the stop date arrives with no order that covered the plan, the lesson is the cost, not a reason to add a second supplier.
What dropshipping mistakes are common in Canada?
Common mistakes are treating the intro price as the real plan, promising delivery from a warehouse you have not used, and counting revenue as profit. Also common: running ads before a sample arrives, and ignoring a chargeback because the supplier “handled fulfillment.” The customer paid you. The card network will ask you.
Another mistake is importing commercial goods on a personal exemption story. The CBSA note above draws the commercial line at goods imported for sale.
Which tax rules apply to dropshipping in Canada?
Dropshipping income in Canada is business income if you are carrying on the activity, reported on Form T2125. Self-employed people pay both shares of the Canada Pension Plan contribution on the net. GST/HST registration follows the $30,000 small-supplier test across your taxable supplies. GST at the border on a commercial import is a different charge from GST/HST you may have to collect on the sale. Read both. The GST/HST registration guide is the registration map.
This is not tax, legal, or insurance advice. Recheck Shopify’s pricing page and the CBSA commercial-import pages before you rely on the dollar figures. Plan prices and intro offers change.
Which guides sit next to dropshipping in Canada?
The wider store is how to start a Shopify store. Selling something you can inspect is reselling. A printed product with its own Canada fulfillment notes is print-on-demand. The “skip the hype” frame is overhyped side hustles. A load of returns you sort yourself is liquidation pallets. A pre-built store sold with an income claim is course funnel red flags.
What are the common questions?
Is dropshipping legal in Canada?
Yes. You can sell a product a supplier ships. You still have to describe it honestly, handle the customer, and follow import rules when goods come into Canada for sale. This is not legal advice.
How much does Shopify cost for a dropshipping store in Canada?
Shopify's Canada pricing page lists Basic at $49 CAD a month, or $37 CAD a month billed yearly, with online card rates from 2.8% plus 30 cents CAD. An intro offer can be $1 a month for three months after a short trial. Confirm the live page. The intro price is not the ongoing cost.
Do I pay duty if the supplier ships to my customer?
Maybe. The CBSA treats goods imported for sale as commercial goods, generally subject to 5% GST and possibly duty. Who pays depends on the shipping terms. Read the supplier's page and the CBSA guide before you promise a duty-free delivery.
Is dropshipping passive income?
No. You still answer customers, process refunds, and watch the supplier. One order in the labelled sketch does not cover a $49 monthly plan.
What is a safer first test?
Order one sample, list one product, and set a stop date. Or sell one object you already have through a marketplace, which does not require a monthly store plan.
Which sources support this guide?
The rules, rates, and platform requirements in this guide are checked against these primary sources. Retail price ranges are labelled as ranges to verify locally, and they are not quotes.
- Shopify pricing — Shopify Canada
- Importing commercial goods into Canada — Canada Border Services Agency
- CBSA tips on importing commercial goods — Canada Border Services Agency
- When to register for and start charging the GST/HST — Canada Revenue Agency
- Form T2125, Statement of Business or Professional Activities — Canada Revenue Agency
- Contributions to the Canada Pension Plan — Government of Canada
- False or misleading representations — Competition Bureau Canada