E-commerce has multiplied across Canada, occupying a magnificent part of digital retail. Technological advancements, shifting consumer behavior, and fast internet penetration have made e-commerce a dominant force in Canadian retail.
More number of Canadians and immigrants are looking into this portfolio. And it’s critical to know the current stats to make an informed decision. Let’s figure out the key statistics related to Canadian e-commerce, covering various market aspects.
E-commerce Market Size and Growth
The Canadian e-commerce market has seen impressive growth in recent years. In 2023, total e-commerce sales in Canada were estimated to surpass CAD 40 billion. This indicates a significant jump from previous years. The market is expected to grow steadily, suggesting the Canadian e-commerce market will reach over CAD 50 billion by 2025.
While the growth rate of e-commerce in Canada has been impressive, it’s worth noting that e-commerce sales still account for just a portion of the overall retail market. As of 2022, e-commerce represented around 12% – 13% of total retail sales in the country. However, this figure has been predicted to grow as more consumers shift to online shopping.
Mobile Shopping and M-commerce
Mobile shopping (m-commerce) has become increasingly popular in Canada. This is especially true with the widespread use of smartphones. In 2023, approximately 40% of e-commerce sales were made via mobile devices.
Over 90% of Canadians own a smartphone, with a significant percentage using it for online shopping. In 2020, m-commerce accounted for about 30% of total e-commerce sales in Canada. By 2023, this number had jumped to 40%.
Top E-Commerce Categories
Clothing and Apparel – Fashion items remain one of the largest e-commerce categories. Canadians are increasingly buying clothing items online. In 2023,CAD 6.2 billion worth of apparel was sold online.
Electronics and Technology – Consumer electronics (smartphones, laptops, tabs, and gaming consoles) continue to rise in popular online purchases. Canadians are also increasingly buying smart home devices and/or wearable techs.
Home and Garden – Home goods and garden products have become increasingly popular for DIY culture and home improvement projects. This category had a total sale of CAD 4.1 billion throughout 2023.
Groceries and Food Delivery – Grocery e-commerce has grown exponentially as more Canadians turned to online shopping during the pandemic. By 2023, online grocery sales were valued at around CAD 5 billion.
Health and Beauty – Online sales of health and beauty products (skincare, cosmetics, and wellness supplements) have grown significantly. This category accounts for over CAD 2 billion in annual sales.
Consumer Behavior and Preferences
Free Shipping Preference remains one of the most significant factors influencing Canadian online shopping. Approximately 80% of Canadian consumers expect free shipping on online purchases.
Online Research – Canadians frequently use the internet to research products before purchasing. About 87% of Canadian consumers research products online before buying. This indicates the growing importance of digital touchpoints in the buying journey.
Payment Preferences – Canadians increasingly opt for credit and debit card payments for online purchases. Digital wallets and Buy Now, Pay Later (BNPL) services are also gaining popularity.
BNPL Growth – Notable services like Afterpay, Klarna, and PayBright have become popular in Canada. They offer flexible payment options that appeal to younger shoppers. Nearly 20% of Canadians have used BNPL services as of 2023.
Return Policies – Generous return policies are a significant driving factor in decision-making. As much as 72% of Canadian consumers have indicated that they are more likely to purchase from an online retailer with a free and straightforward return policy.
E-Commerce by Province
Ontario – As Canada’s most populous province, Ontario accounts for the largest share of e-commerce sales. And Toronto remains the hub for online retail.
Quebec – Quebec is also a significant player in the Canadian e-commerce market. French-language websites and localized online experiences play a major role in consumer preferences.
British Columbia – Vancouver’s proximity to Pacific markets comes with high internet penetration. And it has made British Columbia one of the strongest e-commerce provinces.
Alberta and Manitoba – These provinces have also seen intense e-commerce activities and growth. However, they still lag behind Ontario and Quebec regarding overall sales.
E-commerce in Canada seems like a highly dynamic and rapidly evolving sector. Significant growth in sales results from gradual but definite shifting in consumer preferences. Technological advancements also drive the Canadian market forward.
Almost every projection indicates continued growth, urging businesses to adapt to emerging trends. Only broad adaptability can ensure superior customer experiences while leveraging the power of mobile shopping and more personalization.