Online cotton fabric and yarn shop

Sell cotton fabric and yarn online to sewists, knitters and small craft businesses across Canada.

Bolts of cotton fabric and spools of yarn stacked in a textile supplier's store.
Startup costC$2k to C$8k
Monthly revenueC$1k to C$5k
Time needed10+ h/week
First incomeWeeks
  • C$2k-8k
  • Side hustle
  • Online

Estimates for a small start in Canada, not guarantees.

What it is

A small online shop selling cotton fabric by the metre and cotton yarn, sourced from wholesalers or mills and stored at home. You might focus on a niche such as organic cotton, quilting cotton or yarn for crochet.

Your first three steps

  1. Pick a niche, then contact a few Canadian wholesalers or distributors for trade accounts and minimum orders
  2. Order a small first batch, photograph it well and set up an online shop with accurate shipping rates to your provinces
  3. Share your products in local and online sewing and knitting groups and offer a launch deal for first reviews
Who pays

Home sewists, quilters, knitters and crocheters, plus small designers and craft sellers who buy in modest quantities.

How it makes money

You buy at wholesale prices and sell at a markup, by the metre, by the skein or in bundles. Cut-to-order fabric and bulk discounts for craft businesses can raise the order size.

Skills that help
  • Knowing fabric types and yarn weights
  • Product photography and listings
  • Stock and order tracking
  • Customer service
Watch out for
  • Check textile fibre content and labelling rules for goods you sell, and bilingual or French requirements if you sell in Quebec
  • Check whether you need a home-based business licence from your municipality
  • Register for GST/HST once you pass the small supplier threshold, and check provincial sales tax rules
  • If you import, check duties and customs rules with the Canada Border Services Agency
  • Unsold stock and colour differences between screen and fabric can lead to returns

Deep research report · Canada

Everything you need to start: online cotton fabric and yarn shop

Researched with live web search for Canada: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.

  • Startup costs with real prices
  • Licences, registration and rules
  • Pricing: what others charge
  • Break-even example
  • Finding your first customers
  • 30-day launch plan
  • Risks and how to reduce them
Ready in about 2 minutes · one-off payment, tax included

See a full sample report

Questions people ask

How much does it cost to start an online fabric and yarn shop?

Startup costs are typically estimated at around $2,000 to $8,000, depending on how much stock you buy, your website setup and any photography or packaging supplies. Unsold stock can tie up money, so many sellers start with a focused range.

What rules should I check before selling fabric and yarn in Canada?

Things to check: textile fibre content and labelling rules, bilingual or French requirements if you sell in Quebec, and whether you need a home-based business licence. Also check GST/HST registration once you pass the small supplier threshold, plus provincial sales tax rules.

How much can a small online cotton shop earn?

Monthly revenue is typically estimated at around $1,000 to $5,000, depending on your niche, stock range and marketing. Returns from colour differences between screen and fabric can affect results, so describe and photograph products carefully.

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