Canada E-commerce Market - Growth, Trends, COVID-19 Impact and Forecasts (2022-2027)

Market Overview

Canada's E-commerce Market is estimated to register a 14.50 % CAGR From 2022 to 2027. Advanced infrastructure, high internet penetration, and an increasing number of card-based payment systems, among other factors, are driving the market.

• Amazon dominates the entire e-commerce and shopping sector, with a robust presence in Canada's computers and electronics category. Its success is mainly due to its wide offerings, ranging from electronics to books, streaming, and television. That is, Amazon Canada attracts a diverse range of customers.
• With its Canadian prices, Amazon Prime keeps things simple. If the client wants to use the service for a whole year, it will cost $61, or they can pay $5.12 per month. Prices have not risen as they have in the United States. For those who like to crunch numbers, the annual rate works out to just $5.12 per month.
• Prime Video is the most influential streaming feature with Amazon Prime in Canada. It's a video platform with a library that can compete with Netflix and Hulu, but it can get lost in the shuffle of competitors. However, with an ever-expanding library of originals and premium channel integrations, Prime Video appears to be on the rise.
• The number of Canadians willing to use more advanced and non-traditional payment methods increased. In 2020, 43.2 % of Canadian phone users reported using a digital wallet, while another 20.4 % used the PayPal app to conduct financial transactions. Overall, Canadians are increasingly willing to embrace the world of e-commerce, are becoming more accepting of new and innovative payment methods, and are becoming more comfortable storing data and making purchases online.
• As COVID-19 ended in April 2020, retail sales fell while online shopping increased. Furthermore, other retail trade subsectors, such as furniture and home furnishings stores, sporting goods, hobby, clothing, and accessories stores, experienced much sharper in-store sales from February to April 2020. E-commerce sales increased as in-store sales decreased in these subsectors.
• The COVID-19 pandemic has had a long-term impact on the retail industry. Small firms are increasingly transforming to e-commerce platforms and utilizing them novelly. The action of Canadians to continue using e-commerce or return to traditional purchasing techniques can change the structure of the retail trade industry in Canada. The retail landscape will undoubtedly influence.

Scope of the Report

E-commerce is the purchasing and selling of products and services over the Internet. It is conducted over computers, mobiles, tablets, and other smart devices. There are primarily two types of e-commerce, Business-to-Consumer (B2C) and Business-to-Business (B2B).

The Canada E-commerce Market is segmented into B2C E-Commerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture and Home), and B2B E-Commerce.

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Key Market Trends

Increasing internet users in Canada

• Canadian consumers highly depend upon the Internet to place orders. Internet consumer sales have risen far higher than traditional retail sales over the last few years. Most Canadian retail firms have adopted internet-based systems along with wireless technologies to improve business-to-business and business-to-consumer relations. Manufacturing firms and government organizations are enhancing Internet use for purchases, especially for small routine orders. Although approximately 94% of Canadians have access to stable internet service, the users primarily live in the country's more urban areas.
• Internet access provides an essential link to the rest of the world for residents in remote communities in Northern Canada, but delivering high-speed services remains costly and difficult. As of January 2022, 55 percent of Canadians made online retail purchases with their mobile devices, and this trend is growing. Millennial consumers (ages 18-34) lead the movement, with 47% of these shoppers purchasing via digital devices at least once a week.
• The Canadian E-commerce market is very similar to that of the United States, and it shares some of the same trends as retailers to the south. Hybrid purchases, "Click and Collect," and "omnichannel" consumers ordering products online and taking them home in a brick-and-mortar store seem to be two trends shaping the Canadian e-commerce market. The Canadian E-commerce market generally markets through social media because the return on investment by using social media is constantly improving, and retailers are increasingly spending marketing dollars on social media ads.
• The transition to mobile payments "mPOS (mobile Point-Of-Sale)" through technologies such as Apple Pay, Android Pay, and Google Pay – is growing in Canada. In addition, the ongoing rollout of 5G across Canada would also boost mobile commerce beyond 2020. Currently, coverage in cities is prioritizing. The following 5G spectrum auction in Canada has been postponed until June 2021 to prioritize existing connectivity during the 2020 pandemic.
• In Canada, there are several methods for internet shopping to collect a payment, the most common of which are credit card-based – Interac Online, MasterPass, and PayPal –. Still, some vendors also offer the option of prepaid cards or prepaid vouchers. MasterCard is Canada's most popular credit card, accounting for a 53.6 % market share. In terms of consumer preferences, young Canadians are more willing to make mobile purchases and are more receptive to mobile advertisements. Another preference in Canada is for video advertising: according to Com Score, mobile commerce (m-commerce) is rising, owing to smartphones' and tablets' increasing mobile connectivity. Digital advertising has surpassed TV advertising revenues and is poised to become Canada's preferred advertising medium.

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