Canada B2C Ecommerce Market Size & Forecast by Value and Volume Across 80+ KPIs - Databook Q4 2025 Update

Key Trends and Drivers

Expansion of Omnichannel Retail Integration Accelerates

• Large Canadian retailers are accelerating omnichannel integration as store networks regain importance. Companies such as Canadian Tire, Loblaw, Hudson’s Bay, and Indigo have expanded services like ship-from-store, same-day pickup, and in-store returns for online orders. Loblaw’s 2024 investor updates highlight the continued rollout of integrated e-commerce store operations via PC Express and store-based fulfillment.
• Rising cost pressures are pushing retailers to leverage stores as fulfillment assets rather than expand warehouse footprints. Canadian consumers have returned to physical stores post-pandemic but continue to research and transact online, pushing retailers to merge digital and physical journeys. Logistics constraints, including long-haul transport distances and carrier surcharges, make local fulfilment more efficient.
• More retailers will convert stores into micro-fulfilment hubs and expand pickup-forward formats. Marketplace players like Amazon Canada and Walmart Canada will deepen partnerships with local businesses to expand last-mile reach. Omnichannel will become the default operating model, reducing the distinction between online and offline retail.

Growth of Domestic Marketplaces and Brand-Owned Platforms Intensifies

• Canada is seeing growth in domestic marketplaces and direct-to-consumer (D2C) channels. Loblaw Marketplace, Canadian Tire Marketplace, and Best Buy Canada Marketplace have expanded seller categories in 2023-2024. Globally recognised brands operating in Canada, such as Lululemon and Canada Goose, continue to strengthen their D2C online platforms and loyalty ecosystems.
• Retailers are seeking to diversify revenue streams through third-party seller commissions without holding inventory. Increased advertising opportunities on owned platforms provide additional income streams, similar to U.S. retail media trends. Brands want more control over pricing and data, especially as paid social and search ROI fluctuates.
• Marketplace competition will rise between Amazon, Walmart, and domestic retailer-led platforms. More Canadian brands will move toward hybrid marketplace-plus-D2C models. Retail media will grow, resulting in greater monetisation of traffic on Canadian e-commerce sites.

Payment Modernisation and Adoption of Real-Time Payments Gains Momentum

• Payments modernization is accelerating through Interact e-Transfer’s expanded features, bank-led digital wallet growth, and anticipation of Canada’s Real-Time Rail (RTR) system, expected to roll out under Payments Canada’s modernization program. Retailers, including Shopify merchants, have expanded support for real-time and low-fee payment methods.
• Consumers are increasingly choosing lower-fee, faster payment methods amid rising living costs. Retailers want to reduce card processing fees in a market where discussions about interchange have been active. The regulatory and banking sector push for payments modernization is introducing new rails and security standards.
• RTR adoption will shift some e-commerce payments away from traditional cards toward instant account-to-account methods. Higher usage of Interac-based flows will support faster refunds and payouts, improving consumer experience. Retailers may reconfigure checkout flows to prioritise lower-cost payment instruments.

Cross-Border and U.S.-Linked Purchasing Rises

• Canadians are increasingly purchasing from U.S. and international retailers due to broader assortment, favourable price differences, and aggressive shipping programs. U.S. retailers like Target, Nike, and Shein have increased their shipping presence to Canada. The continued strength of Amazon’s U.S.-to-Canada shipping pipeline is influencing consumer expectations for assortment breadth.
• Many U.S. retailers integrate Canadian shipping options even without physical presence, widening category availability. Currency fluctuations, promotional pricing, and awareness of duty thresholds drive consumers toward cross-border deals. Canadian consumers have become comfortable with longer shipping times when the price advantages justify them.
• Cross-border activity will continue to rise unless regulatory changes raise duty thresholds or impose new requirements. Canadian retailers will respond with broader online assortments and more aggressive price-matching strategies. Logistics providers may introduce more cross-border consolidation hubs to reduce per-parcel cost.

Competitive Landsacpe

Current State of the Market

• Canada’s e-commerce landscape is shaped by a mix of international platforms, national retailers, and sector-focused digital channels. Penetration is steady, but competition is concentrated around logistics efficiency, marketplace scale, and retail media capabilities. Large omnichannel retailers such as Loblaw, Canadian Tire, and Walmart Canada continue integrating stores into last-mile networks, reducing reliance on centralized fulfillment. Meanwhile, consumer expectations for faster delivery and broader assortment are intensifying competitive pressure between pure-play platforms and traditional retailers.

Key Players and New Entrants

• Amazon Canada remains the largest online retailer, supported by its expanded fulfillment infrastructure and Prime delivery services. Walmart Canada continues to invest in nationwide pickup and marketplace expansion. Among national retailers, Loblaw, Best Buy Canada, and Canadian Tire are strengthening their integrations with the marketplace and loyalty programs. In vertical categories, Sephora Canada, Sport Chek, and IKEA Canada remain key online players.
• New entrants include global D2C brands scaling cross-border shipping to Canada, such as Shein and Temu and specialized U.S. retailers that have added Canadian checkout and duty-paid shipping options. Domestic small-business-led digital storefronts are also growing through Shopify’s ecosystem.

Recent Launches, Mergers, and Acquisitions

• 2023-2024 activity shows selective expansion rather than large consolidations. Loblaw continued expanding its marketplace categories and digital health offerings. Amazon Canada launched additional regional delivery stations, improving same-day coverage in major metros. Walmart Canada has invested in upgrades to its distribution centres and introduced sustainability-led transportation programs. Cross-border players such as Temu have scaled marketing and logistics partnerships to increase Canadian delivery speeds. No major e-commerce M&A took place, but partnerships in payments, fulfillment, and retail media continue strengthening across retailers.

Report Scope

Canada B2C Ecommerce Market Size and Growth Dynamics

• Gross Merchandise Value
• Gross Merchandise Volume
• Average Value per Transaction

Canada Social Commerce Market Size and Growth Dynamics

• Gross Merchandise Value
• Gross Merchandise Volume
• Average Value per Transaction

Canada Quick Commerce Market Size and Growth Dynamics

• Gross Merchandise Value
• Gross Merchandise Volume
• Average Value per Transaction

Canada B2C Ecommerce Market Segmentation by Ecommerce Vertical

• Retail Shopping
• Travel & Hospitality
• Online Food Service
• Media & Entertainment
• Healthcare & Wellness
• Technology Products & Services
• Other

Canada B2C Ecommerce Market Segmentation by Retail Shopping Category

• Clothing, Footwear & Accessories
• Health, Beauty & Personal Care
• Food & Beverage
• Appliances & Electronics
• Home Improvement
• Books, Music & Video
• Toys & Hobby
• Auto Parts & Accessories
• Other

Canada B2C Ecommerce Market Segmentation by Retail Shopping Sales Channel

• Platform-to-Consumer
• Direct-to-Consumer
• Consumer-to-Consumer

Canada B2C Ecommerce Market Segmentation by Travel & Hospitality Category

• Air Travel
• Train & Bus
• Taxi & Ride-Hailing
• Hotels & Resorts
• Other

Canada B2C Ecommerce Market Segmentation by Travel and Hospitality Sales Channel

• Air Travel- Aggregator App
• Air Travel- Direct-to-Consumer
• Train & Bus- Aggregator App
• Train & Bus- Direct-to-Consumer
• Taxi & Ride-Hailing- Aggregator App
• Taxi & Ride-Hailing- Direct-to-Consumer
• Hotels & Resorts- Aggregator App
• Hotels & Resorts- Direct-to-Consumer
• Other- Aggregator App
• Other- Direct-to-Consumer

Canada B2C Ecommerce Market Segmentation by Online Food Service Sales Channel

• Aggregator App
• Direct-to-Consumer

Canada B2C Ecommerce Market Segmentation by Media & Entertainment Sales Channel

• Streaming Services
• Movies & Events
• Theme Parks & Gaming
• Other

Canada B2C Ecommerce Market Segmentation by Engagement Model

• Website-Based
• Live Streaming

Canada B2C Ecommerce Market Segmentation by Location

• Cross-Border
• Domestic

Canada B2C Ecommerce Market Segmentation by Device

• Mobile
• Desktop

Canada B2C Ecommerce Market Segmentation by Operating System

• iOS / macOS
• Android
• Other Operating Systems

Canada B2C Ecommerce Market Segmentation by City Tier

• Tier 1
• Tier 2
• Tier 3

Canada B2C Ecommerce Market Segmentation by Payment Instrument

• Credit Card
• Debit Card
• Bank Transfer
• Prepaid Card
• Digital & Mobile Wallet
• Other Digital Payment
• Cash

Canada B2C Ecommerce Consumer Demographics & Behaviour

• Market Share by Age Group
• Market Share by Income Level
• Market Share by Gender

Canada B2C Ecommerce User Statistics & Ratios

• Internet Users
• Ecommerce Users
• Social Media Users
• Smartphone Penetration
• Banked Population
• Ecommerce Per Capita
• GDP Per Capita
• Ecommerce as % of GDP
• Cart Abandonment Rate
• Product Retun Rate

Canada B2C Ecommerce Operational Metrics by Ecommerce Segment

• Gross Merchandise Value by Segment

Canada B2C Ecommerce Operational Metrics by Retail Shopping Category

• Gross Merchandise Value by Category

Canada B2C Ecommerce Operational Metrics by Sales Channel

• Gross Merchandise Value by Channel

Canada B2C Ecommerce Operational Metrics by Location

• Gross Merchandise Value by Location

Canada B2C Ecommerce Operational Metrics by Device

• Gross Merchandise Value by Device

Canada B2C Ecommerce Operational Metrics by Operating System

• Gross Merchandise Value by Operating System

Canada B2C Ecommerce Operational Metrics by City Tier

• Gross Merchandise Value by City Tier

Canada B2C Ecommerce Operational Metrics by Payment Instrument

• Gross Merchandise Value by Payment Instrument

Reasons to Buy

• Comprehensive Market Intelligence: Develop a complete understanding of the B2C ecommerce landscape in Canada with fundamental ecommerce metrics such as gross merchandise value, gross merchandise volume, and average value per transaction across all major ecommerce segments.
• Granular Segmentation and Cross-Analysis: Analyse the online retail ecosystem through detailed segmentation covering ecommerce segments, retail product categories, travel and hospitality verticals, media and entertainment services, sales channels, devices, operating systems, cities, and payment instruments, enabling deep insight into evolving consumer shopping patterns.
• Operational and Performance Benchmarking: Benchmark marketplaces, direct-to-consumer platforms, aggregators, and category-focused players using KPIs such as GMV share, category-level performance, channel efficiency, device contribution, and payment mode penetration, supporting comparative assessment of platform strengths and competitive positioning.
• Consumer Behavior and Ecosystem Readiness: Understand how demographics, income groups, gender mix, device usage, and payment preferences shape online purchasing decisions, influencing category demand, cart abandonment behavior, product return tendencies, and the shift toward digital-first commerce.
• Data-Driven Forecasts and KPI Tracking: Access a structured dataset of 80+ ecommerce KPIs with historical and forecast values up to 2029, providing clarity on growth drivers, category expansion, sales-channel transitions, and payment-instrument evolution across the B2C ecommerce value chain.
• Decision-Ready Databook Format: Delivered in a standardized, analytics-friendly databook format aligned with financial modeling requirements, enabling ecommerce companies, consumer brands, payment providers, technology firms, and investors to conduct evidence-based market assessment and strategic planning.