Report

The Canada E-commerce Market size is estimated at USD 42.33 billion in 2025, and is expected to reach USD 67.46 billion by 2030, at a CAGR of 9.77% during the forecast period (2025-2030).

Key Highlights
- The e-commerce market in Canada is growing significantly, driven by the high Internet and mobile penetration, changing consumer behavior, and secure and diverse payment options. The Canadian consumer landscape is characterized by high internet penetration and a growing preference for online shopping. Over 90% of Canadians have access to the Internet, and a significant portion of this population engages in online shopping.
- Canadian consumers appreciate the convenience, variety, and competitive pricing offered by e-commerce platforms. Additionally, mobile commerce is rising in Canada, with more consumers using smartphones and tablets for shopping. According to the report by BIP (Canada), smartphone use for the Internet reached 44% in 2023. This trend underscored the importance of mobile-optimized websites and apps for retailers.
- Further, with a large percentage of the population connected to the Internet, the potential customer base for online retailers is substantial. The widespread use of smartphones further enhances the accessibility and convenience of online shopping. Also, efficient logistics and delivery networks, including same-day and next-day delivery options, play a crucial role in enhancing the e-commerce experience. Companies like Canada Post and Purolator have expanded their capacities to meet the growing demand.
- In Canada, many physical retailers have expanded their online presence, integrating e-commerce into their business models. This omnichannel approach allows retailers to reach a broader audience and offer a seamless shopping experience. Also, the rising middle class and increasing disposable income levels in Canada have fueled demand for consumer electronics products such as smartphones, laptops, tablets, and smart home devices. As consumers become more tech-savvy and aspire to upgrade their lifestyles with the latest gadgets, they increasingly turn to e-commerce platforms for their purchases.
- The e-commerce landscape in Canada is poised for further growth in the coming years. As technology advances and consumer tastes evolve, e-commerce firms are under pressure to adapt swiftly and innovate to retain their competitive edge. Prioritizing customer experience, integrating cutting-edge technologies, and tackling logistical hurdles are imperative strategies for driving sustained growth in this ever-evolving market.


Canada E-commerce Market Trends

The Number of Internet Users is Increasing in Canada


- Canadian consumers are increasingly relying on the Internet for purchases, with online sales outpacing traditional retail transactions in recent years. Most retail businesses in Canada have integrated internet-based platforms, often incorporating wireless technologies, to bolster their interactions with companies and consumers. Moreover, manufacturing entities and governmental bodies are shifting to the Internet for procurement, particularly for smaller, regular orders. Around 94.3% of Canadians in 2023 had consistent internet access.
- Internet access provides an essential link to the rest of the world for residents in remote communities in Northern Canada, but delivering high-speed services remains costly and complex. According to reports published by the International Trade Administration in 2023, in 2022, Canada boasted a staggering 27 million e-commerce users, representing 75% of the nation's population. Projections indicate this figure is set to climb to 77.6% by 2025. This growing inclination toward e-commerce is driving the overall market.
- The Canadian e-commerce market is similar to that of the United States, and it shares some of the same trends as retailers in the South. Hybrid purchases, such as "click and collect" and "omnichannel," where consumers order products online and pick them up from a brick-and-mortar store, are shaping the Canadian e-commerce market. The Canadian e-commerce market involves social media usage because the return on investment by using social media is constantly improving, and retailers are increasingly spending significantly on social media ads.
- In Canada, there are several payment methods in internet shopping, the most common of which are credit card-based, such as Interac Online, MasterPass, and PayPal. Some vendors also offer the option of prepaid cards or prepaid vouchers. Also, in terms of consumer preferences, young Canadians are more willing to make mobile purchases and are more receptive to mobile advertisements. As per the report by BIP (Canada), a smartphone is the most used device for internet access in Canada among people. Around 49% of women and 39% of men use smartphones to access the Internet.
- Video advertising is also preferred in Canada. According to Com Score, mobile commerce (m-commerce) is rising, owing to the increasing mobile connectivity of smartphones and tablets. Digital advertising surpassed TV advertising revenues and is poised to become Canada's preferred advertising medium.


The B2C E-commerce Segment is Growing


- The business-to-consumer e-commerce market in Canada has experienced significant growth over recent years. The market is witnessing significant shifts and expansions as more Canadians turn to online shopping for convenience, variety, and competitive pricing.
- Canada's B2C e-commerce market has seen a rapid increase in online shoppers and the overall sales volume. According to Statistics Canada, e-commerce sales are continuously growing in the country. This surge is expected to be sustained in the coming years as consumers become accustomed to the convenience of online shopping. The electronics segment is the leading product category, followed by fashion and furniture. Around 59% of Canadian shoppers use credit cards online, and 20% use PayPal. Digital wallets are steadily increasing and are estimated to account for 27% of online payments by 2025.
- The growth of e-commerce can be attributed to the volume of purchases and the amount of goods and services Canadians purchase. The largest share of goods purchased by Canadians from US merchants include apparel and accessories, followed by books, music, and videos, consumer electronics, toys, hobbies, and games, health and beauty products, footwear, jewelry, household goods, sporting goods, DIY and garden supplies, and groceries.
- There are several companies in the market catering to the B2C segment. Of these, Amazon is expected to generate 98% of its sales in Canada through e-commerce channels in 2027, an increase from 96.8% in 2022. Such increasing sales indicate the growth of e-commerce retailers in Canada. The market is expected to continue to grow over the coming years.


Canada E-commerce Industry Segmentation

The Canadian e-commerce market is semi-concentrated and dominated by major players like Walmart, Amazon, Costco Canada, Home Depot Canada, and Target. With a prominent market share, these major players focus on expanding their customer base across the country.


- March 2024: Target Corporation unveiled plans to enhance its guest experience and bolster long-term growth. The plans focus on innovation and expanding its owned brand portfolio, valued at over USD 30 billion, by introducing new, trend-setting products emphasizing quality and value. Additionally, the company is set to roll out a revamped loyalty program featuring three membership tiers, one free to join, empowering guests to tailor their shopping and savings experiences.


Additional Benefits:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support