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Insights into the growth of Canadian eCommerce with payment methods, target audiences, marketing, social media, economy and logistics all profiled

Economy

Canada is home to 36.3 million people with a total GDP of 1.53 trillion USD and is ranked as the 17th richest country, according to the World Bank GDP per capita rankings. Canada’s GDP per capita is currently 41,921 USD and expected to reach 47,663 USD by 2021.

Digital User Insights

There are currently 18.5 million eCommerce users in Canada, with an additional 5.21 million users expected to be shopping online by 2021. Four years from now, these 23.71 million eCommerce users will spend an average of 1208 USD online.

Shoppers Canada

Dividing internet usage into age groups gives a better picture of the Canadian eCommerce market – 96% of 16-24 year-olds, 96% of 25-34 year-olds, and 93% of 35-44 year-olds log on daily. The older generations also log on regularly with 45-54 year-olds and over 55s showing a 84% and 76% daily penetration rate, respectively.

Internetuse Canada

Product Categories

Total Canadian eCommerce revenue across all product categories is 20.16 billion USD, and is expected to grow to 28.7 billion USD by 2021. Fashion is currently the leading product category in Canada, accounting for 6.3 billion USD market share, followed by Electronics and Media, which generates 5.9 billion USD in sales.

By 2021, Fashion will still be the most purchased online category, with an estimated value of 9.9 billion USD, and second favorite, Electronics and Media, is expected to be worth 7.3 billion USD.

Rev Canada

Logistics

In 2016, Canada was ranked 14th in the World Bank Logistics ranking, above leading eCommerce markets such as China, India and Taiwan.

Preferred Online Payments

59% of Canadian shoppers use credit card when shopping online, and a further 20% prefer PayPal. 

Online Canada

Where does Canada buy from?

The US supplies Canada with 219 billion USD in imports – ranging from petroleum to cars and helicopters. Canada’s other key import partners are China (49.5 billion USD), Mexico (22.6 billion USD), Germany (12.9 billion USD) and Japan (11.2 billion USD).

Importing Canada

Internet and Device Usage

Internet penetration in Canada is currently 81.8%, and should reach 83.6% by 2021. Smartphone penetration is a lot less (62.6%), but is projected to grow to 72.2% in the next four years.

82% of online shoppers in Canada shop online via desktop, a stark contrast to the amount of smartphone (9%) and tablet (5%) shoppers.

Devices Canada

Marketing

Total marketing spend in Canada has risen in recent years, as advertisers steadily invest more in digital advertising. In 2017, digital ad spend reached 5.2 billion USD.

Advertising Canada

Social Media

Canada currently has 19.9 million social network users, with Facebook users expected to increase from 18.6 million to 19.6 million by 2020.

Socialnetwork Canada

For more market insights, check out the eShopWorld series of blogs covering a range of emerging eCommerce markets.