Online model railway store

Hobbyists, collectors, parents and grandparents buying gifts, and clubs who live too far from a specialist shop.

Profit on the difference between wholesale and retail price on each item, plus extra margin on starter sets, bundles and accessories. Repeat customers matter a lot.

• Knowledge of model railways and scales
• Online shop setup and photography
• Organised stock and order handling

• Register for GST/HST once you pass the small supplier threshold, and check how provincial sales tax applies to your sales
• Shipping heavy or fragile parcels across a large country can eat into margins, so compare courier rates
• Customs duties and exchange rates if you buy stock from US or overseas suppliers
• Some brands limit online sales or set minimum advertised prices, so read distributor terms
• Check whether your municipality requires a home-based business licence, and tell your home insurer about stock kept at home

Startup costs are typically around $3,000 to $15,000 CAD, depending on how much stock you buy and your website setup. Customs duties and exchange rates can matter if you buy from US or overseas suppliers. These are estimates.

Monthly revenue is typically estimated at around $800 to $6,000 CAD, depending on your range, pricing and order volume. Shipping heavy or fragile parcels across Canada can eat into margins, so compare courier rates.

Check when to register for GST/HST and how provincial sales tax applies. Also check whether your municipality requires a home-based business licence, tell your home insurer about stock kept at home, and read distributor terms on online sales.