How to Start an eCommerce Business in Canada

How to Start an eCommerce Business in Canada

There are countless stories about Canadian entrepreneurs who opted to take their small local businesses online – and watched as they boomed into massive eCommerce ventures. In this day and age, regardless of the nature of your business, having an online sales presence is paramount to your success.

Indeed, the world of eCommerce has emerged as a true force to be reckoned with in the business realm. More Canadians – and people around the globe, for that matter – have embraced the simplicity and satisfaction of online shopping. As such, virtual storefronts have shown tremendous promise, as they not only offer convenience to consumers, but they also create boundless opportunities for business owners who are interested in innovation.

Yet, as is the case with any relatively novel field, starting an eCommerce business in Canada comes with hurdles. Cultivating a captivated virtual following and grappling with the intricacies of online payment systems can be challenging, no doubt. But fret not – we’ve compiled all the tricks of the trade to help you start your eCommerce business in Canada with the utmost ease. We will offer you actionable insights and tips that will ensure your eCommerce venture is not only profitable – but also fulfilling.

Finding Product Opportunities and Choosing What to Sell

Many prospective eCommerce business owners are stumped when it comes to choosing what they want to sell. The truth is, it’s a decision that should not be taken lightly. In a world where digital storefronts have become the norm, the significance of product selection cannot be stressed enough.

A business is only as successful as the product that it’s selling, so we strongly urge prospective entrepreneurs to invest time and research into zeroing in on the right products to sell – and the right audience to sell the products to. Not only will this ensure immediate sales, but it will also assist with sustained growth and customer retention.

Strategies for Finding Profitable Products

In order to pinpoint the perfect product to sell, there are several strategies to consider. We’ve compiled the top 12:

Trend analysis: As an eCommerce business owner, it’s important to always be in-the-know about the latest and greatest products that are captivating consumers. Whether it’s plant-based skincare or medicinal mushrooms, analyzing trends is a great first step to determining what product(s) you wish to sell in your online store.
Niche specialization: Focusing on a specific area of the market (such as eco-friendly products, for instance), will enable you to find your target audience much faster, and determine a hole in the market that you can fill.
In-demand research: Beyond trends, it’s important to understand what products are always in demand. We recommend using platforms like Google Keyword Planner to find popular searches, so you can get to know precisely what products consumers need.
Marketplace exploration: It’s hugely helpful to explore the marketplace more broadly. For instance, try checking out Amazon’s “best sellers” list to get a feel for what people are purchasing the most.
Consumer reviews: When it comes to starting an eCommerce business, analyzing the reviews of other online shops is critical. Doing so will offer first-hand insight into what consumers love about certain products – and, conversely, what they do not.
Problem solving: People love products that purportedly solve problems – such as ergonomic office accessories. Try to find a product that clearly and effectively addresses a common problem people deal with.
Social media monitoring: Similarly to online customer reviews, monitoring the social media profiles of competitive businesses and observing discussions in comments section can do wonders to inform you about the kind of product you want to put out ont he market.
Competitor analysis: Once you’ve narrowed down the specific industry you wish to focus on, it’s key to get familiar with potential competitors in the field. Studying successful competitors provides essential insights.
Cross-border opportunities: Not only should you explore trends in Canada, but you should also dive into in-demand products in other parts of the world. Identifying popular products elsewhere can help you tap into new markets domestically.
Partner with locals: Consumers love unique products, and they are also more inclined to support local artisans. Search around for local artisans and product makers to potentially partner with.
Product bundling: The only thing better than a perfect product is a collection of perfect products. Creating curated bundles, such as workout gear and supplements, is a great way to attract new customers, and add value to their shopping experience.
Crowdsource ideas: At the end of the day, it’s up to consumers to determine the hottest products on the market. That’s why running ideas past your customer base is a great way to nail down what product(s) you should start selling. Use surveys or polls on social media to generate insight.

Places to Find Profitable Product Ideas

Entrepreneurs and eCommerce business owners find inspiration all over the place – whether it’s on social media or out on the streets, observing everyday life. If you’re looking for a spark to start an eCommerce business in Canada, here are a few sources of inspiration to tap into:

Social media

The power of social media for product ideation simply cannot be overstated. Instagram, Pinterest and TikTok, in particular, offer tons of visual cues on trending products and styles that consumers are craving more of.

Online marketplaces

Whether it’s amazon on Shopify, scouting popular online marketplaces and getting a feel for consumer preferences is a great way to spark creativity and innovation.

Trend reports

Professionally drafted industry reports offer data-driven insights into consumer spending habits, and can be a great source for finding product ideas.

Niche forums

Sometimes, inspiration can come from the most unexpected of places. Finding niche forums online, like Reddit, for instance, can be both highly revealing and motivating. Don’t discount all the internet has to offer in terms of being a useful source of information and inspiration.

Trade shows

Attending trade shows is a great way to unveil new ideas, and they present a great opportunity to network face-to-work with people in a given field.

Blogs

Personal blogs, specifically produced by successful influencers and marketers, is a great place to find inspiration for product ideas. Influencers tend to tap into trends as they’re evolving, so it’s useful to take note of what they find up-and-coming.

Media

Staying up-to-date with current events and regularly reading popular magazines and media sites is an excellent way to ideate. You never know what you might read about, and being informed about the world around you is critical to creating a product that will resonate with a broad demographic.

Popular culture

Paying close attention to the latest films, television shows and celebrity gossip can spur new ideas that will undoubtedly draw in a captivated consumer base.

Government publications

Remember, there are all sorts of industry-specific government-enforced regulations. If there’s a particular industry you’re interested in, it’s helpful to look into government publications to gain a better understanding of how the field is policed.

Friendly chatter

Don’t discount the benefit of chatting with prospective consumers in person, and gauging the types of product they’re interested in. Keenly observing the people around you and how they live is a useful practice for galvanizing idea-generation.

Trending Products to Sell in 2023

Based on our own research and company experience in the shipping and logistics space, we’ve compiled a list of trending industries in 2023, and some of the most promising products to sell online:

Health and wellness technology

Perhaps due to the covid-19 pandemic, people are more invested in their health than ever before. Health and wellness technology, therefore, has been booming. Individuals are always seeking more proactive and efficient ways to monitor their health, which is why fitness trackers and smartwatches are such appealing products.

Sustainable fashion

As people become increasingly aware about the perils associated with global warming, consumers are more and more keen about sustainable clothing options. Companies with an eco-friendly ethos are highly attractive in recent years, and sustainable fashion, in particular, is projected to grow significantly in the future.

Plant-based food

If you thought the plant-based space was already booming, think again. This field is expected to surge in popularity in the future, as more and more people are becoming aware of the benefits – including environmental – of eating plant-based diets. This broadened awareness will undoubtedly continue to drive demand for plant-based food products well past 2024.

Personalized jewelry

Consumers are increasingly captivated by customized products that cater their individual needs. The jewelry world, in particular, is embracing the personalization trend, allowing consumers to choose certain states and inscriptions that make their jewelry purchases even more precious.

Remote work solutions

It seems as though “work-from-home” isn’t going anywhere any time soon. In fact, it has become standard practice for many companies in Canada. As a result, there’s been a driven demand for home office furniture and gadgets.

Mental health products

Products that alleviate stress, anxiety and depression are surging in popularity, in tandem with the mental health crisis that much of the world is undergoing.

Fitness equipment

Just as working from home is the norm, so is working out at home. Fitness equipment has seen a major boom of late, and its demand is expected to surge even more in the future. Fitness products – including mats, weights, and stationary bikes – have become hot commodities.

Smart gadgets

Thanks to technological advancements, consumers are consistently trying to carve out “smarter” lives by investing in smart technology – in their homes, workplaces and even for their pets. Now, smart pet feeders, wearable trackers and health monitoring devices are all the rage.

Home décor

More than ever, people are looking to make their homes more comfortable and beautiful. As such, it’s no wonder that the demand for candles, blankets, and wall art have skyrocketed in recent years.

Ideas for Starting an Online Business in 2023

Fortunately, there is no shortage of promising potential business ideas that will likely be a big hit in 2023 and beyond. Based on client intel and our own research, we’ve brainstormed some great ideas that could help you start an eCommerce business in Canada:

Sell your art online

As mentioned above, people are seeking to warm up their homes, and simultaneously, supporting local artists is attractive to many consumers. If you’re crafty and entrepreneurial, selling your art products online would be well worth the effort.

Start a clothing brand

This one might seem daunting, but if you’ve got a passion for fashion, making a clothing line that’s unique to you could be hugely rewarding – and profitable. These days, it’s simple to use product-sourcing apps that will link you to apparel printers and clothing manufacturers. In most cases, manufacturers can also look after your fulfillment, which means you can stick to being the brains behind the business.

Subscription-based hobby kits

Consumers are spending more and more time at home, and they are therefore increasingly drawn to at-home activities. Subscription-based hobby kits – which typically include DIY arts and crafts – are very intriguing to consumers, and they’re simple to put together.

Start a wellness brand

Given society’s collective interest in health and wellness, starting a brand in this space is a smart plan. If you can come up with a product that will pique the interest of wellness gurus, you’ll likely be a huge success.

Start a blog

Believe it or not, blog writing is a hugely profitable way to start an eCommerce business in Canada, as if you grow your platform large enough, you can use it to sell various products. Blog writing enables you to develop a close bond with your consumers, so you can get to know them and the products they prefer.

Create handmade goods

In our increasingly saturated world of carbon-copied products, truly nothing beats handmade goods. If you’re crafty in some capacity – whether it’s being an avid baker or an astute seamstress – try starting a website, and selling your handmade goods there. You’ll be surprised by how captivated consumers are.

Sell on marketplaces

If you’re just stepping into the eCommerce world, it can help to start off by selling your product on already existent marketplaces. Massive seller platforms, such as eBay, Etsy and Facebook Marketplace, do all the heavy lifting for you, so you can focus primarily on your products. It’s a very affordable way to start an eCommerce business in Canada, and it’s highly sustainable.

Offer online services

Remember, your product can be people, too! Online services are huge these days, including online fitness trainers, tutoring, consulting and the like. If you’ve got a certain talent that you wish to share with the world, why not start offering classes online? Sell your own skills as a product.

Start a YouTube channel

If you’ve got a knack for content creation, starting a YouTube channel – or a podcast, for that matter – is a great way to dip into the eCommerce business world. If you attract a large enough following, selling products to them becomes simple, and acquiring affiliate marketing partners becomes easy.

Start a membership/subscription business

The benefit of starting a membership-oriented business is that – if your product strikes a chord with consumers – you can pretty much bank on recurring monthly income. Personalized pet care subscriptions, for instance, are becoming increasingly popular, and similar personalized membership platforms are, too. People are looking for customization and consistency in their lives.

Thoroughly Researching Competition and Writing a Business Plan

Perhaps what makes it most difficult to succeed as an eCommerce business owner is the competition that’s out there. As an entrepreneur, you have to find a way to make your company stand out amongst the competition – and the best way to do that is to have a solid understanding of your industry, and the major players that comprise it. Competitive analysis and strategic business planning are essential, as they serve to guide eCommerce entrepreneurs through the nuances of the often-confusing online market.

Conducting a Competitive Analysis

Once you’ve decided on a business idea, the best thing to do is conduct a competitive analysis, which involves the following:

Identify competitors

Discern who the key players are in your industry. Generally, these are eCommerce businesses that are offering similar products and services.

Contemplate product and pricing

Pay close attention to the products your competition is offering. What sets them apart? What could you improve upon? Then, consider the pricing – and how you could potentially make yours more competitive.

Study marketing strategies

Peek into how your competitors market their products on social media and online. What are their content strategies and advertising methods, and how might you improve upon them in your own venture?

Assess the user experience

Take full advantage of the information that is publicly available, such as customer reviews. They offer extremely valuable insights into what customers like and dislike about a given product or company.

Fill the gaps

An important part of a competitive analysis is determining how your business can fill the current gaps in the market. This could be in terms of customer services, pricing, or specific product features.

SWOT Analysis

In addition to doing a competitive analysis, it’s very useful to turn inward, and conduct a SWOT analysis – which stands for strengths, weaknesses, opportunities and threats. Here’s a step-by-step guide for how to complete one:

Strengths: Identifying your business’s unique strengths – which can range from strong team members to a clear brand identity – that will make your company stand out in the industry.
Weaknesses: Pinpoint any areas where your business is lacking. This can include limited resources or funding, a small customer base, or dated technology/processing systems.
Opportunities: Determine opportunities in the industry that you could harness. Find unexplored niches, emerging trends and existing gaps in the market.
Threats: It’s important to be weary of external threats that could pose a problem for your business. Play close attention to things like economic downturns and shifting consumer preferences

Writing a Business Plan

Once you’ve completed a competitive analysis as well as a SWOT analysis, you’re ready to write a refined business plan. Here’s what your plan should include:

Executive summary

Start your formal business plan with a paragraph or two that summarizes your company’s concept, target market, value proposition and long-term sustainability and financial goals.

Market analysis

Provide a broader overview of the industry at large, including trends, key competitors and market size.

Target audience

Indicate who, specifically, you are aiming to sell your product(s) to. List their key demographics, preferences and pain points.

Unique Value Proposition (UVP)

Indicate what sets your eCommerce business apart from other companies in the field. Address how your UVP will meet consumer needs and desires.

Product Strategy: List the products you are hoping to sell, and explain how you plan to produce them.

Marketing sales strategy

Outline your main marketing methods, and how customer acquisition strategies.

Operational plan

Provide a detailed outline of how your business will run from an operational standpoint. Indicate which eCommerce platform you will use, and how you intend to manage logistics, inventory management and customer support processes.

Financial projections

Draft a financial forecast for your company, including revenue projections, expenses and profitability estimates.

Vision

Clearly define your long-term vision for the business, and indicate how you hope to get there.

Shipping Strategy, Sales and Marketing Goals

Being smart about your shipping and fulfillment strategy – as well as well-defined sales and marketing goals – is essential for starting a sustainable eCommerce business in 2023.

Shipping and Fulfillment Guide

Given that eCommerce businesses depend entirely on shipping to customers, having a solid fulfillment process in place is paramount to running a successful operation. As experts in the space, we’ve outlined a complete guide for shipping and fulfillment – including best practices and potential pitfalls.

Choose shipping partners wisely: Work with reliable shipping services to ensure timely and secure deliveries, while also catering to customer preferences. Negotiate for the best rates, and ask for bulk shipping discounts.
Smart packaging: Optimize packaging to safeguard products during transit and minimize damage to the good. Plus, opt for sustainable packaging if you can, to bolster your brand’s commitment to sustainability.
Order tracking and communication: Keep customers in-the-know about the status of their orders. Communicating regularly with consumers builds trust – which goes a long way for customer retention.
Return process: Make the return process as hassle-free as possible for customers. Have clear directions on your website to make returns seamless.

International Shipping

If you intend on shipping products beyond borders, there are a few key things to keep in mind. For one, international shipping comes at a steeper cost, and there are more regulations in place that can pose delays or other obstacles. That being said, we strongly urge you to leverage international fulfillment centers and collaborate with third-party logistics partners to expedite the process and mitigate potential problems.

Sales and Marketing Goals

In addition to hammering down strong logistics plans, it’s equally important to have clear sales and marketing goals in place. These business objectives can serve as a roadmap that will enable you to plan effectively, convert leads into sales and continuously refine your operations to meet your performance goals.

Launching Your Business

Naturally, launching a new eCommerce business comes with anxiety and excitement – in equal measure. Aspiring entrepreneurs will need to navigate a sea of potential obstacles, paired with boundless opportunities. In any case, it will surely be an exciting and fulfilling journey. Here’s our best advice for getting on the right path in the early stages of your eCommerce company:

Create a brand identity

Having a strong and compelling brand story is essential in order to stand out as a new eCommerce business. Craft an engaging, user-friendly website that showcases your products, and leverage social media as an excellent tool for acquiring customers. Start an SEO (search engine optimization) centric blog, which will drive traffic to your site. Implement email marketing as a useful way to send targeted campaigns to prospective customers. At the very least, it will get your name out there.

Offer incentives

Especially in the early era of your business, start off with a bang by offering irresistible incentives to consumers to get them hooked on your products. Offer discounts, freebies and other limited-time offers to entice customers to make their first purchase.

Collect data

In the eCommerce space, data is gold. Use analytics tools and services that provide invaluable insight into consumer behavior and company performance. These tools will help you identify key metrics and information, so you can make data-driven decisions about your business.

Tips for Starting an eCommerce Store

By now, you should have a pretty solid sense of how to start an eCommerce business. As you set sail on this new venture, here are some overarching tips to keep in mind:

Know your target consumer

Having a strong understanding of your consumer base will enable you to make smart decisions as an entrepreneur. Aligning your products and marketing strategies to the needs of consumers is one surefire way to start a successful business.

Be in demand

Choose your product offerings based on what consumers are craving. That’s why conducting extensive research before starting an eCommerce business is crucial. You must understand industry trends and identify gaps in the market that you can fill. Set yourself apart from competition.

Focus on marketing

Zeroing in on an effective marketing strategy early on in your business is of utmost importance. Experiment with social media campaigns, influencer marketing, email marketing, and pay-per-click ads to determine what works best for your business. Be open to trying new techniques.

Use data

Remember, in the eCommerce world, access to useful data is a gift. Embrace the power of analytical tools to learn what’s resonating with your audience – and what isn’t. Monitor website traffic, conversion rates and customer behavior.

Stay adaptive

Being an entrepreneur is inherently challenging, and the early stages of starting a business can be fraught with uncertainty. As your company evolves and takes shape, it’s important to stay agile and adaptive.

In sum, starting an eCommerce company is no easy feat; it demands perseverance, passion and tremendous drive. That being said, there is nothing more rewarding than building a brand and watching it succeed – and improve the lives of consumers, even in some small way. We wish you well as you embark on this exciting new journey, and we are always here to help you navigate shipping and fulfillment needs.