Dropshipping in Canada is a retail fulfillment method where you sell products online without holding inventory. When a customer places an order, you forward it to a Canadian supplier who ships the product directly to your customer. You profit from the difference between your retail price and the supplier's wholesale price. This model eliminates the need for warehousing, reduces upfront costs, and allows you to offer fast domestic shipping to Canadian customers.

Finding reliable Canadian dropshipping suppliers requires thorough research and verification. Solfru simplifies this process by providing a curated directory of 500+ verified suppliers. Each supplier undergoes our 15-point verification process including business registration checks, product quality testing, and customer satisfaction reviews. You can also find suppliers through industry trade shows, wholesale marketplaces, and direct manufacturer outreach—but these methods require more time and carry more risk.

Canadian suppliers offer several advantages: 1) Fast 2-5 day domestic shipping compared to 2-4 weeks from overseas, 2) No customs fees, import duties, or surprise charges for customers, 3) Products meet Canadian safety and quality standards, 4) Same-timezone customer support for faster issue resolution, 5) Easier returns and refunds processing, 6) Marketing advantage of 'Shipped from Canada' messaging, and 7) Better customer satisfaction leading to more repeat purchases and positive reviews.

Yes, dropshipping is completely legal in Canada. However, you must operate as a legitimate business by registering your business with your province, obtaining a Business Number (BN) from the CRA, and registering for GST/HST collection if your annual revenue exceeds $30,000. You're also responsible for ensuring products comply with Canadian regulations including Consumer Product Safety Act, Competition Act for advertising, and any industry-specific requirements like Health Canada approval for supplements.

The most profitable products to dropship in Canada include: winter and cold weather gear (year-round demand), eco-friendly and sustainable products, pet supplies (58% pet ownership rate), home fitness equipment, home office and ergonomic products, Canadian-made beauty and skincare, health supplements and wellness products, kitchen and cooking accessories, and athleisure wear. Focus on niche products that overseas suppliers can't easily replicate, and consider products that resonate with Canadian values like sustainability and quality.

Starting a dropshipping business in Canada can cost anywhere from $500 to $5,000+ depending on your approach. Basic costs include: e-commerce platform subscription ($29-299/month for Shopify), domain name ($15-50/year), business registration ($60-300), product samples ($100-500), and initial marketing budget ($500-2,000). Solfru offers a free plan to access suppliers, and paid plans start at $49/month. The advantage of dropshipping is minimal upfront inventory investment compared to traditional retail.

While requirements vary by province, you generally need: 1) Business registration with your provincial government, 2) A Business Number (BN) from the Canada Revenue Agency, 3) GST/HST registration if revenue exceeds $30,000 annually, 4) Provincial Sales Tax registration if applicable in your province, and 5) Any industry-specific permits if selling regulated products. Operating without proper registration can result in penalties, so consult with an accountant or business advisor familiar with Canadian e-commerce regulations.

Return policies vary by supplier, but most Canadian dropshipping suppliers offer return windows of 14-30 days for defective or incorrect products. Key advantages of Canadian suppliers include: domestic return shipping (no international fees), faster processing times, and often more flexible policies. Always clarify return terms before partnering with a supplier, including who pays return shipping, restocking fees, and turnaround times. Solfru's supplier profiles include detailed return policy information to help you make informed decisions.

Most Canadian dropshipping suppliers accept: credit cards (Visa, Mastercard, American Express), electronic fund transfers (EFT/e-transfers), PayPal, and corporate checks for established accounts. Some suppliers offer net-30 or net-60 payment terms after you've built a track record. When starting out, expect to pay upfront via credit card or PayPal. Premium Solfru members can access suppliers who offer favorable payment terms and volume discounts.

Solfru's 15-point verification process includes: 1) Business registration validation, 2) Physical address verification, 3) Product quality testing with sample orders, 4) Shipping time verification, 5) Customer service responsiveness assessment, 6) Return policy review, 7) Pricing competitiveness analysis, 8) Inventory management capabilities, 9) Integration/automation options, 10) Financial stability indicators, 11) Customer review aggregation, 12) Compliance with Canadian regulations, 13) Communication quality, 14) Scalability assessment, and 15) Ongoing performance monitoring. Suppliers must pass all criteria and maintain standards to keep their verified status.