Canada E-commerce - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The canada e-commerce market size was valued at USD 41.79 billion in 2025 and estimated to grow from USD 45.66 billion in 2026 to reach USD 71.04 billion by 2031, at a CAGR of 9.27% during the forecast period (2026-2031). This report is Segmented by Business Model (B2C, B2B), Device Type (Smartphone / Mobile, Desktop and Laptop, Other Device Types), Payment Method (Credit / Debit Cards, Digital Wallets, BNPL, Other Payment Method), B2C Product Category (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverages, and More). The Market Forecasts are Provided in Terms of Value (USD).

Canada E-commerce Market Trends and Insights

Intensifying Same-Day Delivery Promos

Same-day delivery has shifted from a premium extra to a baseline expectation in Toronto, Ottawa, and Montreal. Retailers adopting the service report 10% revenue lifts and 80% customer-satisfaction gains as density economics lower per-drop costs by 15-20% since 2024. Micro-fulfillment centers embedded within mixed-use properties now accelerate order cycles while reducing line-haul miles, freeing working capital tied up in regional warehouses. Property developers increasingly earmark logistics space to capture this demand. The strategic payoff extends to acquisition economics because shoppers view delivery speed as a proxy for reliability, boosting brand preference in crowded categories. As more merchants upgrade last-mile capabilities, the Canada e-commerce market will witness broad service-level parity that shifts competition toward assortment, loyalty, and price.

Accelerated Adoption of Interac Online & Contactless Debit

Gen-Z’s preference for debit-based payments is accelerating Interac Online and contactless debit volumes, up 27% in 2024. Card-linked options now contribute to lower cart abandonment, with merchants recording 22% fewer dropped baskets after integrating Interac checkout buttons. Debit dominance is also curbing churn in subscription models, as direct account funding reduces involuntary cancellations tied to expiring credit cards. The behavioral shift is prompting gateways to embed real-time balance checks and tokenized security, thereby enhancing trust. Over the medium term, payment providers able to bundle debit, BNPL, and open-banking rails within a single stack will secure a competitive edge as the Canada e-commerce market prioritizes seamless, low-fee settlement.

Persistently High Rural Broadband Costs in Atlantic Canada

Atlantic Canada’s rural households pay 42% more for internet but still face slower speeds, holding online shopping participation 37% below the national average. Although Ottawa’s USD 3.225 billion Universal Broadband Fund targets 100% high-speed coverage by 2030, last-mile economics remain challenging. Retailers serving these regions contend with higher delivery surcharges and longer transit times that erode customer experience. The digital divide limits addressable demand for categories such as groceries and bulky goods that depend on reliable connectivity for scheduling and tracking. Until infrastructure investments reach completion, the Canada e-commerce market will exhibit two-speed growth that favors urban corridors over coastal rural communities.

Other drivers and restraints analyzed in the detailed report include:

• U.S.-Canada Micro-Fulfillment Networks
• Federal Digital-Adoption Grants
• Returns-Logistics Surcharges on Bulky Items

Segment Analysis

The B2C segment represented 64.35% of the Canada e-commerce market in 2025, underscoring its entrenched consumer adoption. However, the B2B channel is tracking a 12.17% CAGR from 2026 to 2031, well above the total market pace. Procurement departments are shifting to digital workflows that integrate catalog search, purchase-order automation, and budget controls. Vertical marketplaces for construction, healthcare, and industrial supplies simplify supplier discovery and compliance validation. Subscription replenishment and punch-out catalog features mirror consumer convenience, narrowing experiential gaps between business and personal shopping.

B2C growth persists as social-commerce funnels and DTC playbooks deepen engagement. Influencer-led drops and community memberships lock in repeat buyers. Meanwhile, B2B portals adopt AI-based demand-forecast modules that align purchasing with production schedules, reducing stockouts and over-ordering. The convergence of expectations is leading to unified platform architectures that serve both personas with role-based interfaces, thereby expanding total addressable volume in the Canada e-commerce market.

Desktops commanded 54.28% of transactions in 2025, yet smartphones are growing at 17.62% CAGR, reshaping merchandising priorities. Progressive web apps now deliver near-native performance, narrowing the historical 2.3x desktop-mobile conversion gap to 1.4x. Mobile wallets such as Apple Pay and Google Pay cut checkout friction and lift conversion by 28% when enabled. Voice commerce and connected-device shopping represent less than 5% of orders but signal a future multimodal landscape.

Retailers optimizing product imagery, one-hand navigation, and biometric login earn disproportionate share of wallet among younger cohorts. Inventory visibility tailored to geo-location supports last-minute pickup and delivery, boosting impulse purchasing. As smartphone penetration nears saturation, incremental growth will depend on latency reductions and richer real-time personalization that leverages device sensors, cementing the centrality of mobile in the Canada e-commerce market.

Complete Report Scope:

• By Business Model
  • B2C
  • B2B
• By Device Type
  • Smartphone / Mobile
  • Desktop and Laptop
  • Other Device Types
• By Payment Method
  • Credit / Debit Cards
  • Digital Wallets
  • BNPL
  • Other Payment Method
• By B2C Product Category
  • Beauty and Personal Care
  • Consumer Electronics
  • Fashion and Apparel
  • Food and Beverages
  • Furniture and Home
  • Toys, DIY and Media
  • Other Product Categories

List of Companies Covered in this Report:

• Amazon.com Canada Ltd.
• Walmart Canada Corp.
• Costco Wholesale Canada Ltd.
• Canadian Tire Corporation Ltd.
• Shopify Inc.
• Hudson’s Bay Company
• Best Buy Canada Ltd.
• Home Depot of Canada Inc.
• Loblaw Companies Ltd. (incl. PC Express)
• Apple Canada Inc.
• Wayfair Canada Ltd.
• Indigo Books and Music Inc.
• Metro Inc.
• Sephora Canada Inc.
• Zara Canada Inc.
• Staples Canada ULC
• Simons Inc.
• MEC Mountain Equipment Company Ltd.
• eBay Canada Ltd.
• Groupe Aldo Inc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support