Canada E-Commerce

E-commerce accounted for 6.1% of total Canadian retail sales in December 2024, with online retail sales totaling approximately US$3.14 billion. While earlier projections estimated that Canada’s e-commerce market would generate over US$65.5 billion in 2024, more recent industry estimates suggest it reached approximately US$89.4 billion in gross merchandise value (GMV). The sector is expected to continue its upward trajectory, with revenues projected to reach US$104 billion by 2029.

Following a sharp rise during the COVID-19 pandemic, Canada’s retail e-commerce market has stabilized but remains significantly above pre-pandemic levels. Despite the resurgence of in-store shopping, online retail remains resilient. In 2024, the top-performing categories were fashion (23.3%), hobby and leisure (20.7%), and electronics (20.6%). With strong consumer demand and digital adoption, the sector is poised for continued growth through 2025 and beyond.

Credit cards continue to be the most prevalent payment option, with Mastercard being the most popular payment-processing company. Digital wallets like Apple Pay and PayPal are also widely used, offering consumers convenient and secure payment alternatives.

Given Canada’s e-commerce infrastructure is closely integrated with that of the United States, U.S.-based e-commerce sites can leverage certain advantages. Firms do not need to set up a separate domain, and Canada demonstrates similar cultural and market trends. Furthermore, there is relatively low market concentration, with the five largest companies only maintaining 40% of the market share.

However, obstacles remain. Products need to meet customs and labeling requirements for Canada. The official languages are English and French, and websites and customer service may need to be offered in both languages to remain competitive in some geographic regions. The Country Commercial Guide from the U.S. Commercial Service in Canada is a valuable resource for obtaining information about Canada’s customs regulations, labeling guidelines, and language requirements.

For more information about opportunities for U.S. companies in the consumer goods industry in Canada, and how the U.S. Commercial Service in Canada assists U.S. exporters, visit www.trade.gov/canada

For further information contact: Commercial Specialist Cat Le