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Canada E Commerce Market

ID: MRFR/ICT/44619-HCR
200 Pages
Aarti Dhapte
February 2026

Canada E-Commerce Market Size, Share and Trends Analysis Report By E-commerce Type (Business to Business (B2B), Business to Consumer (B2C)) and By E-commerce Application (Home Appliances, Fashion Products, Groceries, Books, Others) - Forecast to 2035

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Canada E Commerce Market Infographic
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Canada E Commerce Market Summary

As per Market Research Future analysis, the Canada E Commerce Market size was estimated at 1041.5 USD Billion in 2024. The E Commerce market is projected to grow from 1236.05 USD Billion in 2025 to 6850.3 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 18.6% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The Canada e commerce market is experiencing robust growth driven by technological advancements and changing consumer preferences.

  • Mobile commerce is rapidly expanding, with a notable increase in transactions via smartphones and tablets.
  • Sustainable shopping practices are gaining traction, as consumers increasingly prioritize eco-friendly products and brands.
  • Personalization and enhanced customer experience are becoming essential for e commerce platforms to retain and attract customers.
  • Technological advancements in e commerce and the rise of social commerce are key drivers propelling market growth.

Market Size & Forecast

2024 Market Size 1041.5 (USD Billion)
2035 Market Size 6850.3 (USD Billion)
CAGR (2025 - 2035) 18.68%

Major Players

Amazon (US), Alibaba (CN), eBay (US), Walmart (US), JD.com (CN), Shopify (CA), Rakuten (JP), Zalando (DE), Target (US)

Our Impact
Enabled $4.3B Revenue Impact for Fortune 500 and Leading Multinationals
Partnering with 2000+ Global Organizations Each Year
30K+ Citations by Top-Tier Firms in the Industry

Canada E Commerce Market Trends

TheCanada E Commerce Market in Canada is currently experiencing a dynamic evolution. This evolution is characterized by rapid technological advancements and shifting consumer preferences. As digital platforms become increasingly integrated into daily life, consumers are gravitating towards online shopping for its convenience and accessibility. This trend is further fueled by the proliferation of mobile devices, which enable seamless shopping experiences. Retailers are adapting to these changes by enhancing their online presence and optimizing their websites for mobile use, thereby catering to the growing demand for efficient and user-friendly interfaces. Moreover, the e commerce market is witnessing a notable rise in the adoption of innovative payment solutions. Consumers are increasingly favoring digital wallets and contactless payment methods, which offer enhanced security and convenience. This shift not only reflects changing consumer behavior but also indicates a broader trend towards cashless transactions. As businesses continue to invest in technology and infrastructure, the e commerce market is poised for sustained growth, driven by evolving consumer expectations and the ongoing digital transformation of retail. In summary, The e commerce market in Canada is marked by technological integration and changing payment preferences. This suggests a robust future for online retail.

Mobile Commerce Growth

The rise of mobile commerce is reshaping the e commerce market, as consumers increasingly utilize smartphones for shopping. This trend indicates a shift towards mobile-optimized websites and applications, enhancing user experience and accessibility.

Sustainable Shopping Practices

There is a growing emphasis on sustainability within the e commerce market, as consumers become more conscious of their purchasing decisions. Retailers are responding by offering eco-friendly products and transparent supply chains, appealing to environmentally aware shoppers.

Personalization and Customer Experience

Personalization is becoming a key focus in the e commerce market, with businesses leveraging data analytics to tailor shopping experiences. This trend suggests that consumers are more likely to engage with brands that understand their preferences and provide customized recommendations.

Canada E Commerce Market Drivers

Rise of Social Commerce

Social media platforms are increasingly becoming vital channels for the e commerce market in Canada. The rise of social commerce is reshaping the retail landscape. In social commerce, consumers can purchase products directly through social media. Platforms like Instagram and Facebook are integrating shopping features, allowing brands to reach consumers in a more interactive manner. Recent statistics suggest that around 25% of Canadian consumers have made a purchase through social media in the past year. This trend indicates that social commerce is not merely a passing phase but a significant driver of growth in the e commerce market, as it combines social interaction with shopping convenience.

Expansion of Delivery Options

The e commerce market in Canada is witnessing a significant shift in consumer expectations. This shift is regarding delivery options. With the increasing demand for convenience, consumers are seeking faster and more flexible delivery solutions. Many retailers are now offering same-day or next-day delivery services, which are becoming essential for customer satisfaction. Recent data indicates that nearly 60% of Canadian consumers consider delivery speed a critical factor when making online purchases. This trend suggests that the expansion of delivery options is a crucial driver in the e commerce market, as businesses that adapt to these expectations are likely to enhance their competitive edge.

Growth of Subscription Services

The e commerce market in Canada is experiencing a notable increase in subscription-based services. Consumers are increasingly drawn to the convenience and value offered by these models. Consumers are increasingly drawn to the convenience and value offered by subscription models, which provide regular deliveries of products ranging from groceries to personal care items. This trend is reflected in the growing number of Canadian households opting for subscription services, with estimates suggesting that around 20% of households are currently subscribed to at least one service. The growth of subscription services indicates a shift in consumer behavior, as the e commerce market adapts to meet the evolving preferences of Canadian consumers.

Increased Focus on Cybersecurity

As the e commerce market in Canada expands, the importance of cybersecurity has become increasingly pronounced. With the rise in online transactions, consumers are more concerned about the safety of their personal and financial information. E commerce businesses are investing heavily in advanced security measures to protect against data breaches and cyber threats. According to industry reports, approximately 40% of Canadian consumers have expressed concerns regarding online security when shopping. This heightened focus on cybersecurity not only builds consumer trust but also serves as a competitive differentiator in the e commerce market, as businesses that prioritize security are likely to attract more customers.

Technological Advancements in E Commerce

The e commerce market in Canada is experiencing a notable transformation. This transformation is due to rapid technological advancements. Innovations such as artificial intelligence (AI), machine learning, and augmented reality (AR) are enhancing the online shopping experience. For instance, AI-driven chatbots are providing real-time customer support, which is likely to increase customer satisfaction and retention. Furthermore, the integration of AR allows consumers to visualize products in their own environment before making a purchase. According to recent data, approximately 30% of Canadian consumers express a preference for retailers that utilize AR technology. This trend indicates that technological advancements are not only improving operational efficiency but also driving consumer engagement in the e commerce market.

Market Segment Insights

By Product Category: Electronics (Largest) vs. Fashion (Fastest-Growing)

In the Canada e commerce market, the product category segment is largely dominated by electronics, capturing the largest market share. Fashion follows closely, marking significant growth as consumer preferences shift towards online shopping for apparel and accessories. Home goods, groceries, and health and beauty segments also contribute to the overall diversity, but they hold comparatively smaller shares than electronics and fashion. The growth trends in this segment are notable, particularly for fashion, which has emerged as the fastest-growing category. The rise of mobile shopping and targeted online marketing strategies are driving this growth, with consumers increasingly embracing e commerce for convenience and variety. Additionally, the health and beauty segment is witnessing steady growth due to rising consumer awareness around wellness and personal care products.

Electronics: Dominant vs. Fashion: Emerging

Electronics is characterized by a robust offering of gadgets and devices, appealing to tech-savvy consumers in Canada. This segment includes categories like smartphones, laptops, and smart home devices, which are consistently in high demand. On the other hand, fashion is an emerging segment fueled by younger shoppers who are inclined towards online platforms for purchasing clothing and accessories. The growth of social media has also allowed fashion brands to reach wider audiences, creating a dynamic and competitive environment. While electronics remain a dominant force due to constant innovation and demand, fashion is making significant strides, with an increasing number of brands adopting e commerce strategies to enhance their market presence.

By Business Model: B2C (Largest) vs. B2B (Fastest-Growing)

The Canada e commerce market has shown a diverse distribution of market share across various business models. B2C remains the dominant segment, catering directly to consumers with a wide array of products and services, making it the largest contributor to the market. In contrast, B2B is quickly gaining traction, leveraging technology to facilitate transactions between businesses and accounting for a growing share of the market as companies seek to streamline operations and expand their reach. Growth trends indicate a significant shift toward digital platforms, particularly in the B2B space, which is experiencing rapid expansion due to increasing automation and a focus on efficiency. Furthermore, the rise of e-commerce in Canada has led to enhanced consumer preferences for convenience and personalization, prompting businesses to adopt B2C strategies that cater to these demands. The integration of new technologies and innovative marketing strategies is likely to further propel these segments into the foreseeable future.

B2C (Dominant) vs. B2B (Emerging)

In the Canada e commerce market, B2C stands as the dominant business model, primarily due to its ability to provide diverse products directly to consumers. This model thrives on customer-centric strategies, incorporating features such as easy navigation, personalized shopping experiences, and efficient delivery options. On the other hand, the B2B segment, while currently viewed as emerging, is on an upward trajectory as businesses increasingly recognize the value of collaborating through online platforms. This model focuses on bulk transactions and long-term partnerships, showing promise in leveraging data analytics to optimize supply chains and enhance customer relationships. The interplay between B2C and B2B showcases the dynamic nature of the market, with both models contributing to the overall growth.

By Payment Method: Credit Card (Largest) vs. Digital Wallet (Fastest-Growing)

In the Canada e commerce market, the payment method segment shows a notable distribution among different values. Credit cards continue to dominate, accounting for a significant market share due to their widespread acceptance and consumer trust. Digital wallets are rapidly gaining traction, appealing to tech-savvy consumers and offering convenience in online transactions. Bank transfers and cash on delivery remain relevant but have smaller shares in the evolving landscape. The growth trends indicate a shifting preference towards digital wallets, fueled by advancements in technology and the increasing demand for seamless payment experiences. This rapidly-growing segment is supported by the rising smartphone penetration and a surge in online shopping. Conversely, traditional methods like bank transfers are witnessing slower growth, as convenience and speed take precedence in the consumer decision-making process.

Credit Card: Dominant vs. Digital Wallet: Emerging

Credit cards remain the dominant payment method in the Canada e commerce market, attributed to their established presence and user familiarity. They offer robust security features, reward programs, and are widely accepted across various platforms. Conversely, digital wallets are an emerging force in this market, capturing the attention of younger consumers who prioritize speed and convenience in transactions. These digital solutions facilitate quick payments via mobile devices, enhancing the shopping experience. As innovations in fintech continue to reshape consumer preferences, digital wallets are expected to grow rapidly, driven by their integration with e-commerce platforms and increasing merchant partnerships.

By Customer Type: Individual Consumers (Largest) vs. Small Businesses (Fastest-Growing)

The Canada e commerce market showcases a diverse landscape in terms of customer types, with individual consumers holding the largest share. This segment significantly outnumbers small businesses and large enterprises, driven by changing shopping habits and increased access to online platforms. While individual consumers dominate the market, small businesses are carving out an important niche as they embrace digital solutions to expand their customer reach. Growth trends indicate that small businesses will experience the fastest growth as they leverage e commerce capabilities to adapt to consumers' changing buying preferences. This is fueled by the rising trend of entrepreneurs establishing online stores and the increasing use of technology to streamline operations. Large enterprises maintain a steady presence, though they face challenges related to agility and innovation compared to their smaller counterparts.

Individual Consumers: Dominant vs. Small Businesses: Emerging

Individual consumers represent the dominant force in the Canada e commerce market, characterized by high-frequency purchases and a growing preference for convenience and variety. They drive the demand for diverse product offerings and seamless online shopping experiences. Small businesses, on the other hand, are emerging as significant players in this space, often focusing on personalized services and local products to attract consumers. Their agility allows them to adapt quickly to market trends, making them increasingly relevant in the competitive landscape. These small enterprises often utilize social media and online marketplaces to enhance visibility and engage with potential customers, further promoting growth while aiming to capture a more substantial market share.

Get more detailed insights about Canada E Commerce Market

Key Players and Competitive Insights

The e commerce market in Canada is characterized by a dynamic competitive landscape, driven by rapid technological advancements and shifting consumer preferences. Major players such as Amazon (US), Shopify (CA), and Walmart (US) are at the forefront, each employing distinct strategies to enhance their market presence. Amazon (US) continues to innovate through its extensive logistics network and advanced AI capabilities, focusing on personalized shopping experiences. Shopify (CA), on the other hand, emphasizes empowering small and medium-sized enterprises (SMEs) with robust e commerce tools, thereby fostering a diverse marketplace. Walmart (US) leverages its vast physical store network to integrate online and offline shopping, enhancing customer convenience and operational efficiency. Collectively, these strategies contribute to a competitive environment that is increasingly focused on customer-centric solutions and technological integration.
Key business tactics within the market include localizing manufacturing and optimizing supply chains to enhance responsiveness to consumer demands. The competitive structure appears moderately fragmented, with a mix of established giants and emerging players. This fragmentation allows for a variety of business models, from direct-to-consumer approaches to marketplace platforms, each influencing the overall market dynamics. The collective influence of key players shapes a landscape where agility and innovation are paramount, as companies strive to differentiate themselves in a crowded marketplace.
In October 2025, Shopify (CA) announced a strategic partnership with a leading logistics provider to enhance its fulfillment capabilities. This move is significant as it aims to reduce delivery times for merchants using the platform, thereby improving customer satisfaction and retention. By streamlining logistics, Shopify (CA) positions itself as a more attractive option for SMEs looking to compete with larger players, potentially increasing its market share in the e commerce sector.
In September 2025, Amazon (US) launched a new initiative focused on sustainability, committing to achieve net-zero carbon emissions by 2040. This initiative is crucial as it aligns with growing consumer demand for environmentally responsible practices. By investing in renewable energy and sustainable packaging, Amazon (US) not only enhances its brand image but also addresses regulatory pressures, positioning itself as a leader in corporate responsibility within the e commerce market.
In August 2025, Walmart (US) expanded its online grocery delivery service, partnering with local farms to offer fresh produce directly to consumers. This strategic expansion reflects Walmart's commitment to integrating local sourcing into its supply chain, which may enhance its appeal to health-conscious consumers. By focusing on fresh and local products, Walmart (US) differentiates itself from competitors, potentially capturing a larger share of the grocery e commerce segment.
As of November 2025, current trends in the e commerce market include a pronounced shift towards digitalization, sustainability, and the integration of AI technologies. Strategic alliances are increasingly shaping the competitive landscape, enabling companies to leverage shared resources and expertise. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technology, and supply chain reliability. This shift suggests that companies that prioritize these elements may gain a competitive edge in an ever-evolving market.

Key Companies in the Canada E Commerce Market include

Industry Developments

The Canada E-Commerce Market has seen significant recent developments, with various companies adapting to the ongoing digital transformation. In October 2023, Shopify announced enhancements to its platform aimed at optimizing the user experience for Canadian small businesses, focusing on integrated payment solutions. 

Meanwhile, Walmart and Loblaw have ramped up their e-commerce initiatives to compete with the growing online shopping culture, which has seen a steady increase in Canadian consumers preferring to shop online for groceries and household items. The market has witnessed marked growth, with estimates showing that e-commerce sales in Canada reached CAD 40 billion in 2023, contributing substantially to overall retail growth.

In terms of mergers and acquisitions, no major transactions have been prominently noted within the last few months among the key players, including Amazon, Best Buy, and Canadian Tire. Looking back, the acquisition of Well.ca by J.E. Hunn Acquisitions Inc. in April 2022 also highlights the consolidating trends in the sector. As e-commerce continues to evolve, the competitive landscape among these companies is expected to present new growth opportunities and challenges for the foreseeable future.

    • E-Commerce Market Segmentation Insights
    • E-Commerce Market E-commerce Type Outlook
      • Business to Business (B2B)
      • Business to Consumer (B2C)
    • E-Commerce Market E-commerce Application Outlook
      • Home Appliances
      • Fashion Products
      • Groceries
      • Books
      • Others

Future Outlook

Canada E Commerce Market Future Outlook

The e commerce market in Canada is projected to grow at an 18.68% CAGR from 2025 to 2035, driven by technological advancements, changing consumer behaviors, and increased mobile commerce.

New opportunities lie in:

  • Integration of AI-driven personalized shopping experiences
  • Expansion of subscription-based e commerce models
  • Development of localized fulfillment centers for faster delivery

By 2035, the e commerce market is expected to be robust, reflecting substantial growth and innovation.

Market Segmentation

Canada E Commerce Market Customer Type Outlook

  • Individual Consumers
  • Small Businesses
  • Large Enterprises

Canada E Commerce Market Business Model Outlook

  • B2C
  • B2B
  • C2C
  • C2B

Canada E Commerce Market Payment Method Outlook

  • Credit Card
  • Digital Wallet
  • Bank Transfer
  • Cash on Delivery

Canada E Commerce Market Product Category Outlook

  • Electronics
  • Fashion
  • Home Goods
  • Groceries
  • Health and Beauty

Report Scope

MARKET SIZE 2024 1041.5(USD Billion)
MARKET SIZE 2025 1236.05(USD Billion)
MARKET SIZE 2035 6850.3(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 18.68% (2025 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Billion
Key Companies Profiled Amazon (US), Alibaba (CN), eBay (US), Walmart (US), JD.com (CN), Shopify (CA), Rakuten (JP), Zalando (DE), Target (US)
Segments Covered Product Category, Business Model, Payment Method, Customer Type
Key Market Opportunities Integration of artificial intelligence for personalized shopping experiences in the e commerce market.
Key Market Dynamics Rising consumer preference for online shopping drives competition and innovation in the e commerce market.
Countries Covered Canada
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FAQs

What is the projected market size of the Canada E-Commerce Market by 2035?

The projected market size of the Canada E-Commerce Market is expected to reach 1840.0 USD Billion by the year 2035.

What was the value of the Canada E-Commerce Market in 2024?

In 2024, the Canada E-Commerce Market is valued at 1036.45 USD Billion.

What is the expected compound annual growth rate (CAGR) for the Canada E-Commerce Market from 2025 to 2035?

The expected CAGR for the Canada E-Commerce Market from 2025 to 2035 is 5.356%.

What is the market size for Business to Business (B2B) e-commerce in Canada by 2035?

The market size for Business to Business (B2B) e-commerce in Canada is expected to reach 480.0 USD Billion by 2035.

How much is the Business to Consumer (B2C) segment valued at in 2024?

The Business to Consumer (B2C) segment of the Canada E-Commerce Market is valued at 789.9 USD Billion in 2024.

Who are the major players in the Canada E-Commerce Market?

Some of the major players in the Canada E-Commerce Market include Amazon, Shopify, Walmart, and Alibaba Group.

What opportunities are emerging in the Canada E-Commerce Market?

Emerging opportunities in the Canada E-Commerce Market include the growth of mobile commerce and increased online shopping preferences.

What are some key trends driving the growth of the Canada E-Commerce Market?

Key trends driving the growth include the rise of personalized shopping experiences and advancements in payment technologies.

What challenges does the Canada E-Commerce Market currently face?

The Canada E-Commerce Market faces challenges such as cybersecurity threats and supply chain disruptions.

What is the expected value of the B2C segment by 2035?

The expected value of the Business to Consumer (B2C) segment is projected to be 1360.0 USD Billion by 2035.

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