Insights into the growth of Canadian eCommerce
Canada is one of the largest eCommerce markets in the world and an excellent opportunity for retailers operating cross border. With 80% of Canadians reporting they have shopped online in the past year, the market is worth exploring for those considering expanding internationally.
Here is a breakdown of key insights into the Canadian market.
Economy
Canada is home to 37.59 million people with a total GDP of 1.65 trillion USD and GDP per capita of 46,290 USD, which is expected to reach 49,354 USD by 2022.
Product Categories
Total Canadian eCommerce revenue across all product categories is 24.03 billion USD, and is expected to grow to 31.98 billion USD by 2022. Fashion is currently the leading product category in Canada, accounting for 7.07 billion USD market share, followed by Electronics & Media, which generates 6.36 billion USD in sales.
By 2022, Fashion will still be the most purchased online category, with an estimated value of 10.14 billion USD, and second favorite, Electronics & Media will have an expected worth of 7.61 billion USD.
Preferred Online Payments
78% of Canadian shoppers like to pay via credit card when shopping online.
Digital User Insights
In 2018 there were 19.8 million eCommerce users in Canada and there is expected to be an additional 5.21 million users shopping online by 2021.
Where does Canada buy from?
The US supplies Canada with $235 billion USD in imports – ranging from cars to petroleum. Canada’s other key import partners are China ($58.32 billion), Mexico ($28.4 billion), Germany ($14.17 billion) and Japan ($13 billion).
Internet and Device Usage
Internet penetration in Canada is currently 84.6%, and should reach 84.8% by 2022. Smartphone penetration is a bit less (68.7%), but is projected to grow to 77.5% in the next four years.
82% of online shoppers in Canada buy via desktop, a stark contrast to the amount of smartphone (9%) and tablet (5%) shoppers.
eCommerce Growth
eCommerce sales are growing quickly in Canada, after a 9.1% increase in 2018 from the year past, and forecasted growth of 10.1% this year.
Advertising
In 2019, an estimated $6.79 billion of Canadian ad spend will be spent on digital advertising.
Social Media
69% of people in Canada are active social network users, thanks to YouTube, Facebook and Messenger which are the leading social networks.
To find out more about the opportunities available for brands in Canada, download our ‘How to Succeed in Canada’ whitepaper here:
