e-Commerce Market Analytics

The eCommerce market in Canada

Canada is the tenth largest market for eCommerce with a revenue of US$35.5 billion in 2021, placing it ahead of Australia and behind Indonesia.

With an increase of 14%, the Canadian eCommerce market contributed to the worldwide growth rate of 15% in 2021. Just like in Canada, global eCommerce sales are expected to increase over the next years. As new markets are emerging, global growth will continue over the next years. This development will be propelled by East and Southeast Asia with their growing middle class and their lagging offline infrastructure.

With a yearly growth rate of 6% between 2021 and 2025, Canada is expected to grow at about the same rate as the global average (6%).

The eCommerce market in Canada

Top online stores

The biggest player in the Canadian eCommerce market is amazon.ca. The store had a revenue of US$9.8 billion in 2021. amazon.ca is followed by walmart.ca and costco.ca as the second- and third largest stores with US$3.8 billion and US$2.3 billion, respectively. Altogether, the top three stores account for 45% of online revenue in Canada.

Store rankings include every store that generates revenue in Canada. These stores can either have a national focus and only sell in their main country or operate on a global scale. For this evaluation, only revenue created in Canada was considered.

One of the fastest-growing stores in the Canadian market is muji.ca. The store achieved online net sales of about US$1.5 million in 2021. Its revenue growth amounted to 311% in the previous year.

More information on the top 250 online stores in Canada can be found in our ecommerceDB Country Report.

Growth champions:
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Top online eCommerce stores in Canada by eCommerce net sales 2021 in million US$

# Store
1. amazon.ca
US$9,817.5m
2. walmart.ca
US$3,773.5m
3. costco.ca
US$2,262.5m
4. apple.com
US$1,785.8m
5. homedepot.ca
US$1,541.3m

The eCommerce market in Canada

Market size and growth rate

Revenue in 2021
US$58,010.3m
REVENUE
CAGR 2021-2025
15.2%
CAGR
Digital Market Outlook by Statista

The Digital Market Outlook presents up-to-date figures on markets of the digital economy. The comparable key figures are based on extensive analyses of relevant indicators from the areas of society, economy, and technology.

Visit Statista.com

The eCommerce market in Canada is expected to increase over the next few years, as indicated by the Statista Digital Market Outlook. It has been predicted that the compound annual growth rate for the next four years (CAGR 21-25) will be 6%. Compared to the year-over-year growth of 14% between 2020 and 2021, this decrease in yearly growth suggests a moderately flooded market. An other indicator of market saturation is the online penetration of 67% in Canada; in other words, 67% of the Canadian population have bought at least one product online in 2021.

Five categories are considered by ecommerceDB. Electronics & Media is the largest segment in Canada and accounts for 28% of the eCommerce revenue in Canada. It is followed by Fashion with 27%, Toys, Hobby & DIY with 19%, Furniture & Appliances with 16%, and Food & Personal Care with the remaining 11%.


The eCommerce market in Canada

Top shipping service providers

In Canada, Canada Post is the most frequently offered delivery service provider among online stores. Of those stores indicating which service they use to transport their goods, 54% cited Canada Post as one of their providers. Moreover, UPS and FedEx are among the top three shipping service companies offered by online retailers in Canada, at rates of 25% and 17%.

Shipping information is based on orders from the store's main country, which is defined as the one where the store generates most of its online revenue. As a result, only stores that generate more net sales in Canada than in any other country are taken into account. Furthermore, only stores that provide information about their shipping providers can be considered.

Competitor analysis of shipping service providers in Canada

# Shipping service provider
1. Canada Post
54.0%
2. UPS
25.0%
3. FedEx
17.0%