Is Drop Shipping a Business You Want to Consider?

Online business using drop shipments

A lot of people would love to have their own online business.   The problem is they don’t know what they could offer.   Some people are into hobbies that can be turned into a part time business or even grown into a full time operation.   Then there are others that just don’t feel they have anything to offer, nor do they have the start up funds to get something going.   There may still be an online business opportunity called drop shipping.

Drop shipping allows you to sell items online without having to invest in the merchandise.   The items that you sell never pass from your hands. They are shipped directly from the manufacturer to the consumer.  You are simply the sales vessel.   The other good aspect about drop shipping is you should be able to find a business category of goods that you enjoy selling.

This is a simple business to start and doesn’t require a large amount of money for inventory.   Your costs are going to lay in the designing and marketing of your website.

The down side to drop shipping is you really only make your money by selling by volume.   It has low profit margins as it is a very competitive form of business.

It can be quite complex if you carry goods from several different suppliers.   You end up with a detailed and varied shipping formats and the sales platform for your clients to purchase from can be difficult to maintain.

You also are on the front line for client complaints if your drop shipper doesn’t offer good customer service.   Their poor service can affect your entire drop ship business if you are using multiple suppliers.

There are many companies on line that offer you the chance to become a drop shipper company.   It is highly important that you pick one that is reputable and offers good customer service.   You also want to deal with one that allows you to sell products that you have a passion for and believe are good for buyers.

You must remember that you are starting your own business which means that you must comply with all the government business regulations.   You must maintain proper bookkeeping records, and you should rely on a good accountant to assist you with your CRA business filings.


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Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
M3H 2S3

Telephone: (416) 398-1700
Fax: (416) 398-6226

Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant


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