A guide to Canada’s ecommerce market including payment methods, logistics, digital users, social media and growth projections

Economy 

Canada is home to 37.59 million people with a total GDP of 1.65 trillion USD and GDP per capita of US$45,870 , which is expected to reach US$54,726 by 2025.

Digital User Insights

There are currently 27.6 million ecommerce users in Canada, approximately 64% of the population. With a total ecommerce market value of US$32 billion, the current revenue per user is US$1,175.

canada ecommerce

Product Categories

Total Canadian ecommerce revenue across all product categories is US$32 billion, and is expected to grow to US$40 billion by 2025. Electronics & Media is currently the leading product category in Canada, accounting for US$9 billion market share, followed by Fashionwhich generates US$8.6 billion in sales.

By 2025, Fashion will still be the most purchased online category, with an estimated value of US$11 billion, and second favorite, Electronics & Media will have an expected worth of US$10.3 billion.

canada ecommerce

Where do Canadians import from?

Canada imports mostly from United States (US$252 billion), China (US$47.2 billion), Mexico (US$21.3 billion), Germany (US$12.7 billion), and Japan (US$10.2 billion).

canada ecommerce

Preferred Payment Methods

Payment methods vary, but credit cards are preferred with 54% of shoppers using them to make online purchases. Ewallets are steadily increasing, estimated to account for 27% of online payments by 2025.

canada ecommerce

Internet and Device Usage

canada ecommerce

Internet penetration in Canada is currently 87%, and should reach 88.3% by 2025. Smartphone penetration is almost equal at 87.6% , and is projected to grow to 88.19% in the next four years.

32% of online shoppers in Canada buy via desktop, with laptop (50%) smartphone (53%) used more frequently and tablet (24%) not too far behind.

Advertising

In 2021, an estimated US$7.73 (CAD$9.58) billion of Canadian ad spend will be spent on digital advertising.

canada ecommerce

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

*Insights derived from eShopWorld data, Statista, WorldBank, OECD and other industry sources.

 

How to succeed in Canada