How to start an online business in Canada: From an idea to sales in 8 steps

Did you know that Canadian eCommerce sales are projected to hit over C$130 billion by 2027? With more and more Canadians shopping online, there’s never been a better time to learn how to start an online business in Canada.

Thinking about launching an online business in Canada is exciting, and you’ve picked the perfect moment. Going from a spark of an idea to your first sale feels like a huge journey, but it’s completely manageable when you break it down and use the right tools.

Ready to become a Canadian entrepreneur? Let’s walk through how to start an online business in Canada, step by step.

​​​How to start an online business in 8 steps

Here’s your roadmap for turning that brilliant idea into a thriving online store.​

Step 1: Find your niche and come up with a business idea

​Every great business starts with a solid idea that connects with the right people. Your first mission is to find your unique angle – your niche – and define exactly what you want to offer.

Often, the best business ideas come from your own passions and expertise. What are you an expert in? What do you love doing on the weekend? Maybe you’re a hockey parent who knows what makes a great toque. Or a prairie artist with designs that would make for a fantastic tote bag. Your hobbies are a strong starting point for research because you already understand your future customers – you are one of them!

Look at the success of a Canadian brand like Peace Collective. They started with a simple niche: proud Canadians who want to wear their pride on their sleeve (literally). They sell unique apparel that resonates with a specific audience – and that clarity fuels their success.

If you’re not sure what to sell, explore what’s trending in Canada. Check out popular items on marketplaces, see what’s taking off on TikTok, and browse crowdfunding sites like Kickstarter for inspiration.

Remember: You’re not limited to physical products. You can also sell digital goods like design templates, eBooks, online courses, or services.

Once you have a business idea, validate how it fits into the Canadian market.

Step 2: Conduct product and market research

Even the most brilliant idea needs a reality check. Once you’ve identified your product, research your market and competitors to ensure your idea solves a clear need and has strong demand. You need to confirm that your idea is unique, understand what potential customers are looking for, and gauge pricin​

Start with a simple Google search. Look up keywords related to your product and see who your top competitors are in Canada. Use SEO tools to identify other related terms Canadians are searching for. Remember to check social media platforms where your target audience hangs out.

For physical products, Canadian marketplaces are a goldmine of insights. Search for products similar to yours on Amazon.ca, Etsy Canada, Canadian Tire, and Walmart.ca. Compare prices, designs, product descriptions, and customer reviews.

For example, if you want to sell custom t-shirts, exploring Etsy for Canadian sellers will show you what designs are popular, from cheeky Canadiana to beautiful Indigenous art. See what’s already out there and figure out how to offer something fresh and exciting.

Study what your competitors do well and where they fall short. This is your chance to learn from them and build a business that offers better value and a clearer brand.

Step 3: Source products to sell online (the easy way)

Source: Printful

You have a few options for getting products for your Canadian online store:

• Make them yourself: Perfect for one-of-a-kind items if you have the skills and equipment. You control everything and can charge a premium for handmade goods. However, it takes a lot of time and money upfront, and you’re responsible for packing and shipping every order.

• Buy from a wholesaler: Buying in bulk lowers the cost per item, but it means a significant upfront investment. You’ll also need space to store all that inventory (and who wants their garage filled with boxes?), plus you’ll still be handling fulfilment yourself.

• Use a print-on-demand dropshipping partner: This is the smartest and lowest-risk model for new entrepreneurs. With Print on Demand (POD), you partner with a supplier like Printful that handles everything for you.

​Here’s how POD with Printful works: you create a design, add it to a product in our catalogue (like a hoodie, mug, or phone case), and list it on your store. When a customer in Canada buys it, we automatically produce, pack, and ship it directly to them from our Canadian fulfilment centre in Mississauga, Ontario.

​The benefits for your Canadian business are enormous:

• No upfront costs or inventory: You only pay when you make a sale

• Faster, duty-free shipping: Our Canadian facility guarantees your customers from St. John’s to Victoria get their orders quickly, with no surprise customs fees

• More time for you: We handle production and shipping, so you can focus on designing, marketing, and growing your business

With POD, you get to sell unique products without the financial risk or logistical headaches.

Step 4: Define your brand and image

Now that you know what you’re selling and to whom, it’s time to build your brand. Your brand is more than a logo – it’s the feeling, story, and promise behind your business.

Consider what matters to your audience and reflect that in your business name, logo, colour scheme, and the tone of your product descriptions. A brand selling rugged outdoor gear for exploring the Rockies will look and feel very different from one selling chic art prints for downtown Toronto condos.

Don’t be afraid to let your personality shine! Your story and values are what make customers connect with you.

Step 5: Register your business in Canada

This step is crucial for operating legally and building trust with your customers. An official business feels credible and reliable, especially when you’re selling online. Here’s a simple breakdown of what you need to do in Canada.

​First, choose a business structure. The three most common options are

• Sole Proprietorship – you are the business; simple to set up, but you’re personally liable

• Partnership – two or more owners

• Corporation – a separate legal entity, which protects your personal assets but is more complex to set up.

For most new online sellers, a Sole Proprietorship is the easiest way to start.

Next, register your business name. You’ll need to register your business with your provincial or territorial government. If you operate under your own legal name, registration usually isn’t required. If you create a distinct brand name, you’ll need to register it.

Afterwards, get a Business Number (BN) from the CRA. You’ll need a Business Number (BN) from the Canada Revenue Agency (CRA) to handle taxes. You can register for one online for free.

Get to know your tax obligations. This is a big one! In Canada, you’ll need to deal with the Goods and Services Tax (GST) or Harmonised Sales Tax (HST). If your business makes over C$30,000 in revenue in a calendar quarter, you’re required to register for, collect, and remit GST/HST on your sales.

Some provinces also charge PST or QST (in Québec), each with its own rules. Registering early – even before you hit the threshold – will help you stay organised.

It’s always smart to speak with an accountant or legal professional to make sure everything is set up correctly from the start.

Step 6: Set up your website

Your website is your digital storefront. It’s where your customers will browse your products and make purchases. The easiest way to get started is with an eCommerce platform.

Platforms like Shopify (a true Canadian success story!), Wix, or Squarespace offer user-friendly templates and tools that let you build a professional store without needing to code.

Pro Tip: Printful offers seamless integrations with all the major eCommerce platforms. Once you connect your store to Printful, orders flow to us automatically for fulfilment. It’s that easy.

Another option is to sell on a marketplace like Etsy or Amazon.ca. These provide a huge built-in audience, but make it harder to build your own distinct brand. Many Canadian sellers do both: they run their own Shopify store for brand building and list products on Etsy to reach more customers.

Step 7: Develop a marketing strategy​

Even with the best products in the world – if no one knows about them, you won’t sell anything. A strong marketing plan is essential.

Think about where your target audience spends their time online and meet them there. Your digital marketing strategy could include:

• Social media marketing: Showcase your products on Instagram, TikTok, or Facebook.

• Email marketing: Build a mailing list and send out newsletters with special offers and product announcements.

• Online advertising: Run targeted ads on social media or Google.

• Influencer marketing: Partner with Canadian creators who align with your brand.

Plan your marketing calendar around Canadian events and holidays. A special promotion for Canada Day, a new toque design in time for the first snow, or a big Boxing Day sale can drive major traffic and sales.

Step 8: Launch your online business

You’ve done the work – your products are ready, your store is built, and your marketing plan is in place. It’s time to open your virtual doors to the world.

To make your launch a success, create some buzz. Offer a special discount for the first 24 hours, run a giveaway on social media, or launch a limited-edition product to build urgency.

​Remember: launching is just the beginning. The beauty of an online business is that you can always adapt and improve. Listen to customer feedback, keep an eye on what’s selling, and don’t be afraid to experiment.

Congratulations – you’re officially a Canadian online business owner!

Ready to get started on your online business?

​The incredible growth of online shopping in Canada has created a massive opportunity for entrepreneurs just like you. If you have a great idea and the passion to see it through, there are customers across the country waiting for what you have to offer.​

Yes, it takes hard work, but partners like Printful have made it easier than ever to get started. With Print on Demand, you can launch a business with unique, high-quality products without the risk and upfront costs. We handle the logistics so you can focus on what you do best: creating.​

So, what are you waiting for, eh? Let’s start building your online business today.