Starting an online store in Canada is more accessible than ever. The tools are mature, the payment infrastructure is reliable, and Canadian consumers are comfortable buying online. But getting all the pieces in the right order - hosting, platform, payments, legal compliance - requires a clear plan. Here is a practical guide.
Choosing Your Platform
The right e-commerce platform depends on your technical comfort level and how much flexibility you need.
WooCommerce on WordPress is the most flexible option and powers a large share of independent online stores worldwide. Because WooCommerce is a plugin for WordPress, you host it yourself on your own hosting account. This gives you full control over your store, no transaction fees beyond your payment processor, and the ability to customize everything. The trade-off is that you are responsible for hosting, security, and updates. dotCanada hosting is well suited for WooCommerce stores.
Shopify is a fully hosted platform where Shopify handles the server, security, and software. It is easier to get started with but charges transaction fees on top of payment processing fees unless you use Shopify Payments, which is available in Canada. Plans start around $39 CAD per month.
Squarespace offers e-commerce functionality built into its website builder. It is a good fit for small product catalogues and service-based businesses selling bookings or downloads. It is less flexible than WooCommerce for complex store requirements.
For most Canadian small businesses that want long-term ownership and flexibility, WooCommerce on quality Canadian hosting is the recommended path.
Hosting Requirements for E-Commerce
An online store has higher hosting requirements than a brochure website:
- SSL certificate - Mandatory. Every page of your store, especially checkout, must run over HTTPS. cPanel hosting from dotCanada includes AutoSSL at no extra charge.
- PHP 8.1 or higher - Required by current versions of WooCommerce
- MySQL database - Included with all standard hosting plans
- Sufficient storage - Product images add up quickly; ensure your plan includes adequate disk space
- Daily backups - Your store database contains order history, customer data, and product information that cannot be easily recreated
Canadian Payment Gateways
Accepting payment online in Canada means choosing a payment processor. The main options:
Stripe Canada is the most developer-friendly option and widely used by Canadian businesses. It supports Visa, Mastercard, American Express, and Interac via Interac e-Transfer for some plans. Fees are approximately 2.9% plus $0.30 per transaction.
PayPal remains popular because many Canadian shoppers already have PayPal accounts. It is straightforward to integrate with WooCommerce and Shopify.
Moneris is a Canadian-owned payment processor and the largest in the country. It is a good fit for businesses that also sell in person, as Moneris provides integrated in-store and online payment solutions.
Square offers competitive rates and integrates well with both online and point-of-sale systems, making it popular with retailers who sell both in-store and online.
Registering Your Business in Canada
Before accepting payments, ensure your business is properly registered. Requirements vary by province, but generally:
- Sole proprietors and partnerships should register their business name with their provincial government
- Corporations register federally through Corporations Canada or provincially
- You will need a Business Number from the Canada Revenue Agency (CRA) if you are required to collect GST/HST
GST/HST Considerations
If your annual revenue exceeds $30,000, you are required to register for a GST/HST account with the CRA and collect applicable tax on taxable supplies. WooCommerce and Shopify both have tax settings that can apply the correct provincial tax rates automatically based on the customer's location.
Even below the threshold, some businesses register voluntarily to claim input tax credits on business expenses.
Shipping Options for Canadian Sellers
Canada Post is the backbone of Canadian e-commerce shipping and integrates directly with WooCommerce through official and third-party plugins. It offers tracked lettermail, expedited parcel, and Xpresspost services.
Purolator is owned by Canada Post but focuses on courier delivery. It offers strong domestic coverage and is a good choice for heavier shipments or time-sensitive deliveries.
UPS and FedEx are strong options if you ship internationally or need guaranteed delivery windows.
CASL Compliance for Email Marketing
If you collect customer emails and plan to send marketing messages - newsletters, promotional offers, abandoned cart emails - you must comply with Canada's Anti-Spam Legislation (CASL). CASL requires explicit or implied consent before sending commercial electronic messages.
When a customer makes a purchase, you have implied consent to contact them about their order, but you need explicit consent to send marketing emails. Add a clear checkbox at checkout: "Sign me up for promotions and updates" - unchecked by default, with a brief description of what they are agreeing to receive.
Getting the compliance pieces right from the start is far easier than retrofitting them after your list has grown.
