Warehouse storage for online sellers
Store stock for small online brands and pack and ship their orders from a leased unit.
- C$5k-30k
- Part-time
- Own premises
Estimates for a small start in Canada, not guarantees.
What it is
A small leased warehouse where you store products for online sellers, then pick, pack and hand over their orders to couriers. Storage is on shelves or bins rather than full pallets.
Your first three steps
- Talk to local online sellers about what they pay now and which problems they have with storage and shipping
- Look at small units and shelving costs, and test an inventory system with a free trial
- Set up simple rate sheets for storage, picking and packing, and offer a trial to two or three sellers
Who pays
Small online brands, Etsy and Shopify sellers, and makers who have outgrown their home but are not ready for a large fulfilment company.
How it makes money
A monthly storage fee per shelf, bin or pallet, plus a fee per item picked, per order packed and per inbound delivery received.
Skills that help
- Accurate and organised
- Using inventory or order software
- Packing and basic shipping knowledge
- Clear communication with clients
Watch out for
- Check the lease, zoning and permitted use with your municipality
- Ask an insurance broker about warehouse legal liability for clients' goods as well as general liability
- Mistakes in picking or lost stock can cost you clients, so build checks into your process
- Check rules for storing food, cosmetics, supplements or other regulated products before accepting them
- Courier rates, peak season rushes and winter heating costs can squeeze margins
- Register for GST/HST when required and check WCB or WSIB coverage if you hire
Deep research report · Canada
Everything you need to start: warehouse storage for online sellers
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
Questions people ask
How much does it cost to start a fulfilment business in Canada?
Estimates suggest startup costs are typically around $5,000 to $30,000, depending on your unit, shelving and software. Check the lease, zoning and permitted use with your municipality before committing to a space.
How much can a small fulfilment warehouse earn?
Monthly revenue is typically estimated at around $2,500 to $12,000, depending on your client numbers and services. Courier rates, peak season rushes and winter heating costs can squeeze margins, so keep an eye on them.
What should I check before storing and shipping other sellers' stock?
Ask a broker about warehouse legal liability for clients' goods as well as general liability. Check rules for storing food, cosmetics, supplements or other regulated products, and register for GST/HST when required.
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