eCommerce in Canada... Worth it?

Around 1 year ago I tried doing eBay in Canada. Selling products sourced from various distributors and selling them on eBay. What I found was that the competition was stiff, the prices were extremely low allowing for not much profit in the first place, and eBay's fees were ridiculous.

However, companies still made money, in the States (from my research).

Canadian sellers were constantly complaining (and probably still are considering the new hikes/increases of Canada Post) of the pricing model for Canada Post and their charged in comparison to competitors such as USPS and other postal services.

I'm not here to ask what is the best alternative to Canada Post; and I understand there are shipment companies willing to take stock down to the US border (from places like Toronto) and ship from there to reduce cost.

My question is for people who do sell within Canada... How do you maintain profit with Canada Post's hefty pricing model (especially the new one)? With many Canadians ordering from the USA, and more competition.

Is Canada Post only good for items which have a easily targetable brand or niche, or are so innovative and scaleable (such as picking Apple over a Microsoft PC) that the cost can be accounted for?

Would you keep distribution within Canada, or move it to the States? (all depending on the item ofc)...

 

Burger King bought Tim Hortons to base their corporation in Canada which has a lower tax bracket. I would look into tax differences as a contributor to your decision.

 

Putting any limitations on your business will undoubtedly restrict the potential of increasing sales and profit. If you market and advertise properly (AdWords/Bing/Google Shopping) then the only limitation you'll ever have is your own budget.