Canada’s e‑commerce market is on a tear. Often overshadowed by its neighbour to the south, the Great White North is quietly emerging as one of the most promising e-commerce frontiers for global businesses. With a highly connected population, fast-growing digital adoption, and rapidly evolving consumer behaviours post-pandemic, 2025 marks a strategic moment for tech founders, investors, and brands to take note.
A Market on a Growth Trajectory
Canada’s e‑commerce market is expected to hit impressive heights. Depending on the research source, projections range from C$75 billion to C$140 billion by 2025, with annual growth rates between 9% and 17%. This momentum reflects a major shift in how Canadians shop, accelerated by the pandemic but sustained by evolving consumer expectations.
Consider that in 2019, online sales made up just under 7% of total Canadian retail. By 2024, that number had more than doubled, and by 2025, experts anticipate 15% of all retail spending in Canada will occur online. This puts the Canadian market in the same league as e‑commerce powerhouses like Australia and parts of Western Europe.
The Rise of the Mobile-First Canadian Shopper
One of the most striking trends driving this growth is the mobile-first behaviour of Canadian consumers. Over 33% of all online purchases in Canada are now completed via smartphones. This figure is rising quickly. The convenience of shopping from mobile devices, paired with improved digital UX and fast checkout solutions like Apple Pay and Google Wallet, is reshaping the path to purchase.
By 2025, more than 77% of Canadians will be active online shoppers, up from 75% in 2024. And they’re not just buying from domestic brands. Canadian consumers are increasingly comfortable purchasing across borders, especially from the U.S., China, and Europe. A growing percentage of e‑commerce sales now comes from cross-border transactions, making Canada a gateway market for global sellers who want North American reach without starting in the ultra-competitive U.S. first.
Who’s Winning and Why
Amazon continues to dominate the Canadian e‑commerce space, with nearly C$10 billion in annual revenue and over 30 million monthly visits. Walmart Canada and Costco also hold significant shares, thanks to their omnichannel logistics and brand trust. However, what’s more interesting is the surge in local, specialized players.
Take Natura Market, for example, a fast-growing Mississauga-based organic grocery e‑retailer, which generated C$19 million in revenue in 2021. Or Emerge Commerce, which owns a portfolio of niche online brands spanning food, lifestyle, and wellness. These companies are carving out success by targeting value-conscious, wellness-minded, and ethical consumers—segments that are growing rapidly in Canada.
On the tech side, Shopify remains Canada’s crown jewel. The Ottawa-based platform powers millions of merchants worldwide and processed nearly US$300 billion in transactions globally in 2024. Shopify’s ecosystem, including payments, fulfilment, and AI tools, makes it easier for entrepreneurs to launch and scale, further fueling Canada’s vibrant e‑commerce scene.
What Canadians Are Buying—and How
Canadians are particularly active in fashion, electronics, and home goods. Fashion e‑commerce is growing by over 15% annually, and per-customer spending in this category exceeds C$1,100 per year. Electronics and media, especially phones, computers, and digital subscriptions, also rank high in consumer spending, making Canada an appealing test market for tech products.
When it comes to payment methods, traditional credit and debit cards still lead, but digital wallets and Buy Now, Pay Later (BNPL) services are growing fast. BNPL, in particular, is seeing over 19% annual growth, especially among younger consumers looking for financial flexibility. Interac, Canada’s homegrown debit network, continues to innovate with online payment solutions that are widely trusted.
Infrastructure and Innovation Driving Success
Canada’s e‑commerce boom isn’t just about consumer appetite. It’s also being powered by infrastructure improvements and technology investments. Major urban centres like Toronto, Montreal, and Vancouver are leading the charge in same-day and next-day delivery, thanks to partnerships between local carriers, fulfilment centres, and AI-powered logistics platforms.
AI is also transforming how Canadian brands engage with customers. From predictive analytics and chatbots to dynamic pricing and personalised shopping experiences, AI tools are becoming standard. Businesses that adopt these tools gain an edge in both customer retention and operational efficiency.
Security and trust are critical in this high-growth environment. With more digital transactions come more cybersecurity threats. Businesses looking to enter or expand in Canada must not overlook data protection, regulatory compliance, and fraud prevention, especially with the country’s Digital Services Tax now in effect as of June 2024, applying to online ad revenue and marketplace sales.
Strategic Challenges and How to Navigate Them
Canada’s e‑commerce potential is enormous, but it’s not without hurdles. Shipping to rural areas remains expensive and logistically complex. Brands must either build out micro-fulfilment networks or partner with third-party logistics (3PL) providers who specialise in last-mile delivery.
Competition is another reality. Dominated by giants like Amazon and Walmart, the Canadian market can be tough to crack without a compelling value proposition or localised brand strategy. However, niche, mission-driven brands, especially those in sustainability, health, and lifestyle, are finding plenty of room to thrive.
And while Canada is tech-forward, regulatory hurdles such as new taxation policies and data protection laws can pose challenges for foreign companies. That said, businesses that take the time to understand these frameworks are better positioned to build trust with Canadian consumers and regulators alike.
Why Global Entrepreneurs Should Enter Canada Now
For business and tech leaders worldwide, Canada presents a rare blend of predictability and growth. It’s a mature economy with strong purchasing power, but its e‑commerce sector is still rapidly evolving. Consumers are digital-savvy, infrastructure is robust, and cross-border commerce is welcomed.
If you’re looking to expand, Canada offers:
- A digitally engaged customer base with high brand loyalty
- One of the world’s most stable and secure digital economies
- A launchpad for broader North American expansion
- Advanced infrastructure and AI-driven logistics
- A government supportive of small business digitisation
In short, Canada’s e‑commerce market is no longer an emerging story; it’s a ripe opportunity. Whether you’re a startup scaling internationally or an established brand seeking new growth, 2025 is the time to enter or double down on Canada.
Sources and Further Reading:
- Checkout.com – Canadian 2025 E-Commerce Trends
- Mordor Intelligence – Canada E-Commerce Market
- MarkWide Research – Canada E-Commerce Forecast
- Trade.gov – Canada E-Commerce Overview
- MadeInCA – Canadian E-Commerce Statistics