Online tool and site supplies seller

Small contractors, tradespeople and renovation crews who want quick ordering and delivery to site.

Margin on tools, accessories and consumables, plus delivery fees. Repeat orders from regular trade customers matter most.

• Knowing tools and trade needs
• Sales and relationship building
• Online shop and order management
• Organising stock and deliveries

• Commercial general liability and product liability insurance (check with a broker)
• GST/HST, and PST in some provinces, and the rules for registering once you pass the small supplier threshold
• Supplier agreements, warranty claims and returns on faulty tools; make sure you know who handles them
• Heavy and awkward goods can make shipping costly, and tools can be damaged in transit
• A home-based business licence may be needed, and storing stock at home may affect your home insurance (check with your municipality and insurer)
• In Quebec, websites and product information generally need French; check the language rules
• Competing on price with big-box stores and large online retailers

Startup costs are typically estimated at around $3,000 to $15,000, depending on your website, opening stock, storage and insurance. Shipping direct from suppliers can reduce how much stock you need to hold.

Monthly revenue is typically estimated at around $1,500 to $8,000, depending on the trade you focus on, your product range and whether you offer local delivery. Plan on at least about 10 hours a week. You will be competing with big retailers on price.

Check GST/HST registration once you pass the small supplier threshold, plus PST in some provinces. Also check liability and product insurance, supplier warranty and returns terms, any home-based business licence, your home insurance, and French-language rules in Quebec.