Drop-ship steel supplier for local fabricators

Small fabrication shops, welders, builders, farm equipment makers and contractors who want a reliable local contact and don't buy in mill quantities.

You add a margin on top of your supplier's price, plus delivery charges where it makes sense. Margins per order are thin, so income depends on repeat customers and steady order volume.

• Sales and quoting
• Reading steel specifications and drawings
• Organising orders and deliveries
• Building trust with trade customers

• Credit risk: you may owe your supplier before your customer pays, so check payment terms and credit insurance options
• Steel prices can change quickly, so check how long your supplier holds a quote
• Check current tariffs, trade measures and import rules with the CBSA if any material comes from outside Canada
• Check that steel meets the standards your customers need (for example CSA structural grades) and that mill test certificates are supplied
• Check whether your municipality requires a home-based business licence
• Commercial general liability and product liability insurance, and check for GST/HST registration requirements

Startup costs are estimated at typically around $3,000 to $20,000, depending on your home office setup, insurance and software. You don't hold stock, but check supplier payment terms, since you may owe them before customers pay.

Monthly revenue is estimated at typically around $8,000 to $40,000, depending on your customer base, order sizes and steel prices. These are revenue estimates, not profit, and the work assumes about 20 hours a week or more.

Check how long suppliers hold quotes and what credit insurance is available. If material is imported, check tariffs and CBSA rules. Confirm steel meets customers' standards, such as CSA grades, with mill test certificates. Check for a home-based business licence.