The ecommerce market in Canada is expected to grow by 9.1% annually, reaching US$96.77 billion by 2026.
The ecommerce market in the country has experienced robust growth during 2021-2025, achieving a CAGR of 15.7%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 6.7% from 2026 to 2030. By the end of 2030, the ecommerce market is projected to expand from its 2025 value of US$88.72 billion to approximately US$125.22 billion.
The report provides a detailed assessment of the ecommerce market across all major segments, including retail shopping, travel, food service, media, healthcare, and technology categories. It analyzes sales channels, engagement models, device and operating system usage, as well as domestic versus cross-border flows and city-tier contributions. The study also covers payment instruments and consumer demographics by age, income, and gender to map evolving purchasing behavior. Together, these datasets offer a comprehensive view of ecommerce market size, customer behavior, and digital channel performance.
The research methodology is based on industry best practices. It's unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.
The ecommerce market in the country has experienced robust growth during 2021-2025, achieving a CAGR of 15.7%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 6.7% from 2026 to 2030. By the end of 2030, the ecommerce market is projected to expand from its 2025 value of US$88.72 billion to approximately US$125.22 billion.
Key Trends and Drivers
AI Is Advancing from Product Search to End-to-End Shopping Assistance
- Canadian retailers are increasingly incorporating artificial intelligence across multiple stages of the online shopping journey, extending beyond traditional search functions. Leading retailers and ecommerce platforms are deploying AI-powered recommendation engines, virtual shopping assistants, automated product content generation, personalized promotions, and customer service tools to improve digital engagement. Large retailers such as Shopify, Canadian Tire, Walmart Canada, and Loblaw are expanding AI capabilities to enhance merchandising, inventory planning, and customer interactions.
- Retailers continue to experience pressure from rising digital advertising costs and increasingly selective consumer spending. AI enables merchants to deliver more relevant shopping experiences using first-party customer insights, improving product discovery while increasing conversion rates and average order values. Competition among major omnichannel retailers is encouraging continued investment in proprietary AI capabilities that strengthen customer loyalty and operational efficiency.
- Over the coming years, conversational shopping, predictive recommendations, and AI-assisted merchandising are expected to become standard features across Canadian ecommerce platforms. Smaller retailers are also likely to gain access to these capabilities through software providers offering integrated AI solutions.
Flexible Payment Solutions Are Becoming a Standard Checkout Expectation
- Instalment payment services are becoming a routine component of Canadian ecommerce transactions rather than serving as an alternative financing option. Providers including Affirm, Klarna, Afterpay, PayBright, and PayPal are expanding merchant partnerships, enabling consumers to spread purchases across multiple payments within familiar checkout experiences.
- Higher household expenses, cautious discretionary spending, and continued demand for payment flexibility are encouraging broader adoption of instalment-based purchasing. At the same time, banks and payment providers are incorporating instalment functionality directly into existing credit and digital payment products, reducing reliance on standalone financing applications.
- Looking ahead, flexible payment options are expected to become a standard feature across Canadian online retail. Market competition is likely to focus on responsible lending, seamless checkout integration, and broader financial service ecosystems as consumer protection oversight continues to evolve.
Retail Media Is Emerging as an Important Digital Revenue Stream
- Canadian retailers are increasingly developing retail media businesses that allow consumer brands to advertise directly across ecommerce websites, mobile applications, and loyalty platforms. Companies including Loblaw, Walmart Canada, Metro, and Sobeys are expanding advertising solutions that leverage first-party shopper data to deliver targeted digital campaigns.
- Retailers are seeking additional high-margin revenue sources as fulfilment expenses and customer acquisition costs remain elevated. Growing restrictions on third-party cookies have increased the value of retailer-owned customer data, making retail media an attractive channel for brands seeking measurable advertising performance linked directly to purchasing behaviour.
- Retail media investment is expected to broaden beyond Canada's largest retailers as additional merchants develop advertising capabilities through ecommerce technology and data partnerships. Advertising effectiveness and customer insights will become increasingly important competitive differentiators alongside pricing and product assortment.
Omnichannel Fulfilment Is Becoming More Localized and Partnership-Driven
- Canadian retailers continue strengthening omnichannel fulfilment by combining store networks, distribution facilities, and external logistics providers to improve delivery efficiency. Partnerships with Instacart, Uber Eats, DoorDash, and regional courier services are enabling retailers to expand same-day and scheduled delivery without significant investment in proprietary transportation networks.
- Canada's large geography, dispersed population, and higher delivery costs make flexible fulfilment models particularly valuable. Retailers are optimizing inventory across physical stores and fulfilment centres to reduce delivery times while maintaining cost efficiency and broader geographic coverage.
- Future fulfilment strategies are expected to emphasize localized inventory management, delivery reliability, and collaboration with logistics providers. Competitive advantage will increasingly depend on operational flexibility rather than simply offering the fastest delivery option.
Competitive Landscape
Competition within Canada's B2C ecommerce sector is expected to become increasingly centred on digital capabilities rather than price competition alone. Retailers are investing in artificial intelligence, omnichannel fulfilment, retail media platforms, loyalty ecosystems, and flexible payment solutions to strengthen customer relationships and improve profitability. Large retailers with established store networks are well positioned to integrate physical and digital commerce, while ecommerce technology providers continue expanding services that enable merchants to compete more effectively online. These developments are likely to increase the importance of strategic partnerships across technology, payments, logistics, and digital advertising.Current State of the Market
- Canada's ecommerce market continues to expand steadily, supported by high internet penetration, widespread smartphone adoption, and growing consumer acceptance of digital shopping across multiple retail categories. The market is characterized by strong competition between global marketplaces, domestic retailers, and direct-to-consumer brands. Amazon Canada remains the largest ecommerce platform, while Canadian Tire, Walmart Canada, Costco Canada, Best Buy Canada, Home Depot Canada, Loblaw, and Metro continue strengthening their omnichannel capabilities by integrating stores with digital fulfilment. Beyond merchandise sales, retailers are increasingly differentiating themselves through loyalty programs, personalized customer experiences, convenient delivery options, and integrated payment services.
Key Players and New Entrants
- Amazon Canada continues to lead the marketplace segment, while Shopify remains Canada's most influential ecommerce technology provider supporting thousands of merchants globally. Walmart Canada, Canadian Tire, Costco Canada, Best Buy Canada, Home Depot Canada, Lowe's Canada, Loblaw, Metro, and Sobeys maintain significant positions through omnichannel retail operations. Specialized marketplaces including Etsy and eBay continue serving niche product categories. Digital payment services are supported by PayPal, Apple Pay, Google Pay, Shop Pay, Interac, Affirm, Klarna, Afterpay, and PayBright. Logistics providers including Canada Post, UPS, FedEx, Purolator, DoorDash, and Instacart play an increasingly important role in supporting ecommerce fulfilment. Recent competitive activity has primarily involved capability expansion by established companies rather than the emergence of major new marketplace entrants.
Recent Launches, Partnerships, Mergers, and Acquisitions
- During the past year, Canadian ecommerce developments have focused on expanding technology capabilities and strengthening ecosystem partnerships. Shopify has continued introducing AI-powered commerce features that support merchants in product creation, customer engagement, and operational efficiency. Major retailers have expanded fulfilment partnerships with Instacart, DoorDash, Uber Eats, and regional logistics providers to improve delivery convenience and geographic reach. Retailers have also continued investing in retail media platforms and digital loyalty ecosystems to enhance customer engagement and diversify revenue streams. These developments indicate that collaboration between retailers, technology companies, payment providers, and logistics partners is becoming increasingly important in shaping Canada's evolving ecommerce market.
The report provides a detailed assessment of the ecommerce market across all major segments, including retail shopping, travel, food service, media, healthcare, and technology categories. It analyzes sales channels, engagement models, device and operating system usage, as well as domestic versus cross-border flows and city-tier contributions. The study also covers payment instruments and consumer demographics by age, income, and gender to map evolving purchasing behavior. Together, these datasets offer a comprehensive view of ecommerce market size, customer behavior, and digital channel performance.
The research methodology is based on industry best practices. It's unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.
Report Scope
This report provides a detailed data-driven analysis of the B2C ecommerce market in Canada, focusing on the overall digital retail ecosystem and its growth trajectory. It examines key ecommerce segments, sales channels, and consumer behavior shaping the evolution of online purchasing in the country.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
Canada B2C Ecommerce Key Players Market Share
- Market Share by Retail Shopping Ecommerce
- Market Share by Travel Ecommerce
- Market Share by Food Services Ecommerce
Reasons to Buy
- Comprehensive Market Intelligence: Develop a complete understanding of the B2C ecommerce landscape using updated market indicators, including gross merchandise value, gross merchandise volume, transaction volumes, average value per transaction, ecommerce users, and growth rates across all major ecommerce segments.
- Granular Segmentation and Cross-Analysis: Analyse the online commerce ecosystem through detailed segmentation covering ecommerce verticals, retail product categories, travel and hospitality services, online food services, healthcare and wellness, media and entertainment, technology products and services, sales channels, devices, operating systems, city tiers, and payment instruments, enabling deeper insight into changing consumer purchasing patterns.
- Operational and Performance Benchmarking: Benchmark marketplaces, direct-to-consumer platforms, aggregators, social commerce platforms, and category-focused players using KPIs such as GMV share, transaction contribution, category performance, channel efficiency, device contribution, payment-mode penetration, and competitive positioning.
- Consumer Behavior and Ecosystem Readiness: Understand how demographics, income groups, gender distribution, internet and smartphone penetration, device usage, purchase frequency, payment preferences, and digital adoption influence category demand, cart abandonment, product returns, transaction values, and the transition toward digital-first commerce.
- Data-Driven Forecasts and KPI Tracking: Access a structured dataset of more than 80 ecommerce KPIs with historical estimates and forecasts through 2030, providing visibility into market growth, category expansion, transaction trends, average order values, sales-channel shifts, device adoption, 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 modelling and market-sizing requirements, enabling ecommerce companies, consumer brands, marketplaces, payment providers, technology firms, investors, and other stakeholders to conduct evidence-based market assessment, benchmarking, forecasting, and strategic planning.
Table of Contents
1. About this Report
2. Canada Ecommerce Market Size and Future Growth Dynamics
3. Canada Social Commerce Market Size and Forecast
4. Canada Quick Commerce Market Size and Forecast
5. Canada User Statistics and Ratios Of Key Performance Indicators
6. Canada Ecommerce Market Shares by Key Players
7. Canada Ecommerce Market Size and Forecast by Ecommerce Segments
8. Canada Ecommerce Market Size and Forecast by Retail Shopping Categories
9. Canada Ecommerce Market Size and Forecast by Retail Shopping Sales Channel
10. Canada Ecommerce Market Size and Forecast by Travel and Hospitality Categories
11. Canada Ecommerce Market Share by Travel and Hospitality Sales Channel
12. Canada Ecommerce Market Size and Forecast by Online Food Service Sales Channel
13. Canada Ecommerce Market Size and Forecast by Media and Entertainment Sales Channel
14. Canada Ecommerce Market Size and Forecast by Engagement Model
15. Canada Ecommerce Market Size and Forecast by Location
16. Canada Ecommerce Market Size and Forecast by Device
17. Canada Ecommerce Market Size and Forecast by Operating System
18. Canada Ecommerce Market Size and Forecast by City
19. Canada Ecommerce Market Size and Forecast by Payment Instrument
20. Canada Ecommerce by Consumer Demographics
21. Further Reading
List of Tables
List of Figures
Companies Mentioned
- Amazon
- Kijiji
- walmart
- Best buy
- Canadian tire
- Tripadvisor
- aircanada
- expedia
- booking.com
- blogto
- McDonald's
- Uber Eats: Food Delivery
- DoorDash - Food Delivery
- SkipTheDishes - Food Delivery
- Starbucks
- Too Good To Go: End Food Waste
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 117 |
| Published | July 2026 |
| Forecast Period | 2026 - 2030 |
| Estimated Market Value ( USD | $ 138.49 Billion |
| Forecasted Market Value ( USD | $ 176.61 Billion |
| Compound Annual Growth Rate | 6.3% |
| Regions Covered | Canada |
| No. of Companies Mentioned | 16 |
