Online specialist tool shop

Hobby woodworkers, home renovators, small trades businesses and customers in smaller towns who have limited choice locally.

Mark-up on each item sold, with higher margins on accessories, bundles and starter kits. Repeat orders on consumables like blades, bits and fixings help build steady monthly sales.

• Product knowledge in your chosen niche
• Setting up and running an online shop
• Packing and shipping
• Customer service by email or chat

• Shipping heavy items can eat into margins, so test real parcel costs before setting prices
• Check carrier and Transport Canada rules for shipping cordless tools with lithium batteries
• GST/HST, PST or QST rules when selling to customers in different provinces, check with the CRA and your province
• Selling to Quebec customers can bring French-language requirements, so check your obligations
• Check whether your municipality requires a home-based business licence or limits stock stored at home
• Product liability and commercial general liability insurance, plus a clear returns process

Startup costs are typically around $3,000 to $15,000, depending on your opening stock, website, packing supplies and insurance. These are estimates, and a narrow niche can help keep early stock costs down.

Monthly revenue is typically around $2,000 to $10,000, depending on your niche, pricing and marketing. Around 10 hours a week is a realistic starting point. These are revenue estimates, and shipping costs can reduce what you keep.

Check carrier and Transport Canada rules for shipping cordless tools with lithium batteries, and GST/HST, PST or QST when selling across provinces. Also check Quebec French-language obligations, home-based business limits with your municipality, and product liability insurance.