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Canada B2C E commerce Market

ID: MRFR/ICT/57258-HCR
200 Pages
Aarti Dhapte
October 2025

Canada B2C Ecommerce Market Research Report By Type (B2C Retailers, Classifieds) and By Application (Automotive, Beauty & Personal Care, Books & Stationery, Consumer Electronics, Clothing & Footwear, Home Décor & Electronics, Sports & Leisure, Media & Entertainment, Information Technology, Others) - Forecast to 2035

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Canada B2C E commerce Market Infographic
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Canada B2C E commerce Market Summary

As per MRFR analysis, the Canada B2C Ecommerce Market is projected to grow from USD 630.99 Billion in 2024 to USD 1607.1 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 8.87% during the forecast period (2025 - 2035).

Key Market Trends & Highlights

The Canada B2C Ecommerce Market is experiencing dynamic growth driven by technological advancements and changing consumer preferences.

  • Mobile commerce is on the rise, reflecting a shift in consumer shopping habits towards smartphones and tablets.
  • Sustainability is becoming a focal point for consumers, influencing purchasing decisions across various product categories.
  • The electronics segment remains the largest in the market, while clothing is emerging as the fastest-growing segment due to changing fashion trends.
  • Key market drivers include growing internet penetration and advancements in payment solutions, which are facilitating easier access to online shopping.

Market Size & Forecast

2024 Market Size 630.99 (USD Billion)
2035 Market Size 1607.1 (USD Billion)
CAGR (2025 - 2035) 8.87%

Major Players

Amazon (CA), Walmart (CA), eBay (CA), Shopify (CA), Best Buy (CA), Canadian Tire (CA), Costco (CA), Loblaws (CA), Hudson's Bay (CA)

Canada B2C E commerce Market Trends

The Canada B2C Ecommerce Market is currently experiencing a dynamic evolution, characterized by a growing consumer preference for online shopping. This shift is driven by various factors, including the increasing penetration of high-speed internet and the widespread adoption of mobile devices. As Canadians become more comfortable with digital transactions, businesses are adapting their strategies to meet the changing demands of consumers. The market landscape is also influenced by the rise of social media platforms, which serve as vital channels for product discovery and customer engagement. Furthermore, the emphasis on sustainability and ethical consumption is prompting retailers to rethink their supply chains and product offerings, aligning them with consumer values. In addition, the Canada B2C Ecommerce Market is witnessing a surge in personalized shopping experiences. Retailers are leveraging data analytics to tailor their offerings, enhancing customer satisfaction and loyalty. The integration of advanced technologies, such as artificial intelligence and augmented reality, is further transforming the shopping experience. As the market continues to evolve, businesses must remain agile and responsive to emerging trends, ensuring they meet the diverse needs of Canadian consumers. Overall, the future of the Canada B2C Ecommerce Market appears promising, with ample opportunities for growth and innovation as it adapts to the ever-changing digital landscape.

Rise of Mobile Commerce

The Canada B2C Ecommerce Market is increasingly shifting towards mobile commerce, as consumers prefer shopping through smartphones and tablets. This trend indicates a need for businesses to optimize their online platforms for mobile users, ensuring seamless navigation and user-friendly interfaces.

Emphasis on Sustainability

Sustainability is becoming a central theme in the Canada B2C Ecommerce Market. Consumers are showing a preference for eco-friendly products and practices, prompting retailers to adopt sustainable sourcing and packaging solutions to align with consumer values.

Personalization and Customer Experience

Personalization is gaining traction in the Canada B2C Ecommerce Market, with businesses utilizing data analytics to create tailored shopping experiences. This trend highlights the importance of understanding consumer preferences to enhance engagement and foster brand loyalty.

Canada B2C E commerce Market Drivers

Rise of Social Commerce

The Canada B2C Ecommerce Market is witnessing a significant rise in social commerce, where social media platforms serve as vital channels for product discovery and sales. As of January 2026, platforms such as Instagram and Facebook have integrated shopping features that allow users to purchase products directly through their feeds. This trend is particularly appealing to younger demographics, who are increasingly influenced by social media in their purchasing decisions. Recent statistics indicate that over 40 percent of Canadian consumers have made a purchase through social media in the past year. The integration of social commerce into the Canada B2C Ecommerce Market not only enhances customer engagement but also provides businesses with innovative marketing opportunities. As this trend continues to evolve, it is likely to reshape the landscape of online retail in Canada.

Growing Internet Penetration

The Canada B2C Ecommerce Market is experiencing a notable surge in internet penetration, which is a critical driver for online shopping. As of January 2026, approximately 95 percent of Canadians have access to the internet, facilitating a robust online shopping environment. This widespread connectivity enables consumers to explore a plethora of products and services from the comfort of their homes. Furthermore, the increasing availability of high-speed internet across urban and rural areas enhances the shopping experience, allowing for seamless transactions. The growth in internet users is likely to continue, as government initiatives aim to improve digital infrastructure. Consequently, this trend is expected to bolster the Canada B2C Ecommerce Market, as more consumers engage in online shopping, leading to increased sales and market expansion.

Advancements in Payment Solutions

The Canada B2C Ecommerce Market is significantly influenced by advancements in payment solutions, which enhance the convenience and security of online transactions. As of January 2026, various payment options, including digital wallets, contactless payments, and buy-now-pay-later services, have gained traction among Canadian consumers. This diversification of payment methods caters to different consumer preferences, thereby encouraging more individuals to shop online. According to recent data, nearly 60 percent of Canadians prefer using digital payment methods for their online purchases. The ongoing innovation in payment technologies, coupled with a focus on cybersecurity, is likely to further instill consumer confidence in online shopping. As a result, the Canada B2C Ecommerce Market is poised for growth, driven by the increasing adoption of these advanced payment solutions.

Increased Focus on Customer Experience

The Canada B2C Ecommerce Market is increasingly prioritizing customer experience as a key driver of growth. As of January 2026, businesses are investing in user-friendly website designs, personalized shopping experiences, and efficient customer service to enhance satisfaction. Research indicates that 70 percent of Canadian consumers are more likely to return to a website that offers a seamless shopping experience. Companies are leveraging data analytics to understand consumer behavior and preferences, allowing for tailored marketing strategies. This focus on customer experience not only fosters brand loyalty but also encourages repeat purchases, which are essential for sustained growth in the Canada B2C Ecommerce Market. As competition intensifies, businesses that excel in delivering exceptional customer experiences are likely to thrive.

Government Support for E-commerce Growth

The Canada B2C Ecommerce Market benefits from robust government support aimed at fostering e-commerce growth. As of January 2026, various initiatives have been implemented to promote digital trade and support small businesses in transitioning to online platforms. The Canadian government has introduced funding programs and resources to assist entrepreneurs in establishing their e-commerce operations. Additionally, policies aimed at reducing barriers to online trade, such as streamlined regulations and improved logistics infrastructure, are being prioritized. This supportive environment is likely to encourage more businesses to enter the Canada B2C Ecommerce Market, thereby expanding the overall market size. As government efforts continue to evolve, they are expected to play a pivotal role in shaping the future of e-commerce in Canada.

Market Segment Insights

By Product Category: Electronics (Largest) vs. Clothing (Fastest-Growing)

In the Canada B2C Ecommerce Market, the product category distribution reveals Electronics as the dominant player, capturing a significant share of the market. Following Electronics, Clothing stands out as a growing segment, gaining traction among Canadian consumers who increasingly prefer online shopping for apparel. Other segments such as Home Goods, Beauty Products, and Food and Beverage hold substantial percentages but face stiff competition from these leading categories.

Electronics (Dominant) vs. Clothing (Emerging)

Electronics is recognized as the dominant category in the Canada B2C Ecommerce Market, characterized by a wide array of products ranging from gadgets to home appliances. With advances in technology and increasing consumer reliance on electronic devices, this segment benefits from consistent demand. Conversely, Clothing is positioned as an emerging category fueled by changing consumer preferences towards convenience and variety. The rise of online fashion retailers, coupled with personalized shopping experiences, has accelerated its growth, making it a key player in the evolving ecommerce landscape.

By Consumer Demographics: Age Group (Largest) vs. Income Level (Fastest-Growing)

In the Canada B2C Ecommerce Market, the age group segment shows a diverse distribution, with consumers aged 25-34 claiming the largest share. This demographic is particularly engaging in online shopping, driven by their tech-savviness and familiarity with digital platforms. Meanwhile, younger age groups, especially ages 18-24, are emerging as significant contributors, demonstrating a strong preference for online shopping, which influences their choices as they enter adulthood. Conversely, the income level segment is experiencing rapid growth, attributed to the increasing number of affluent households. The rising trend of online shopping among higher-income individuals is a notable driver. Additionally, the middle-income brackets are also expanding their spending power online, revealing a shifting landscape that reflects changing economic conditions and consumer preferences towards convenient purchasing options.

Age Group: 25-34 (Dominant) vs. Income Level: Middle-Income (Emerging)

In the Canada B2C Ecommerce Market, the age group of 25-34 stands as the dominant segment, representing a demographic that is not only comfortable with technology but also seeks the latest trends and conveniences offered by ecommerce. This group values both quality and convenience, making them prime targets for online retailers. On the other hand, the middle-income segment is rapidly emerging, driven by high disposable income and an increasing inclination to shop online. These consumers are looking for value and affordability, creating opportunities for brands to cater to their specific needs through targeted marketing and tailored product offerings.

By Shopping Behavior: Online Shopping Frequency (Largest) vs. Preferred Payment Method (Fastest-Growing)

In the Canada B2C Ecommerce Market, online shopping frequency remains the largest segment, reflecting a robust shift towards digital purchasing habits among consumers. Users increasingly prefer shopping online regularly, which drives not only volume but also variety in product offerings across platforms. Meanwhile, preferred payment methods are evolving rapidly, with a notable surge in the adoption of digital wallets and contactless payments, indicating a significant shift in consumer preferences towards more convenient and flexible options.

Online Shopping Frequency: Regular Buyer (Dominant) vs. Occasional Buyer (Emerging)

Regular buyers represent the dominant force in online shopping frequency, characterized by their loyalty to specific brands and consistent purchasing patterns. These consumers are well-versed in navigating e-commerce platforms, often taking advantage of loyalty programs and regular offers. In contrast, occasional buyers are emerging as a notable segment, showcasing tentative but increasing engagement with online shopping. These consumers typically shop online for specific needs or occasions, influenced by promotions and social media trends. As both segments evolve, they are shaping a diverse shopping landscape that e-commerce retailers must navigate effectively.

Get more detailed insights about Canada B2C E commerce Market

Key Players and Competitive Insights

The B2C Ecommerce Market in Canada is characterized by a dynamic competitive landscape, driven by rapid technological advancements and shifting consumer preferences. Major players such as Amazon (USA), Walmart (USA), and Shopify (Canada) are at the forefront, each adopting distinct strategies to enhance their market positioning. Amazon (USA) continues to innovate its logistics and delivery systems, aiming for faster fulfillment times, while Walmart (USA) focuses on integrating its physical stores with its online platform to create a seamless shopping experience. Shopify (Canada) emphasizes empowering small and medium-sized enterprises (SMEs) through its e-commerce solutions, thereby fostering a diverse marketplace that enhances competition.

The business tactics employed by these companies reflect a trend towards localization and supply chain optimization. The market appears moderately fragmented, with a mix of large corporations and smaller niche players. This structure allows for a variety of consumer choices, while the collective influence of key players drives innovation and competitive pricing strategies.

In December 2025, Amazon (USA) announced the expansion of its drone delivery service to select urban areas in Canada, aiming to reduce delivery times to under 30 minutes. This strategic move is likely to enhance customer satisfaction and loyalty, positioning Amazon (USA) as a leader in rapid delivery solutions. The implications of this expansion could be profound, as it may compel competitors to accelerate their own logistics innovations to keep pace.

In November 2025, Walmart (USA) launched a new subscription service that offers free shipping and exclusive discounts for online purchases. This initiative appears to be a direct response to the growing demand for convenience and value among consumers. By enhancing its online offerings, Walmart (USA) is likely to strengthen its competitive edge, particularly against Amazon (USA), which has long dominated the subscription model.

In October 2025, Shopify (Canada) introduced a new AI-driven analytics tool designed to help merchants optimize their online sales strategies. This tool seems to reflect a broader trend towards the integration of artificial intelligence in e-commerce, enabling businesses to make data-driven decisions. As Shopify (Canada) continues to innovate, it may solidify its position as a vital partner for SMEs navigating the complexities of online retail.

As of January 2026, the competitive trends in the B2C Ecommerce Market are increasingly defined by digitalization, sustainability, and the integration of AI technologies. Strategic alliances among companies are shaping the landscape, fostering innovation and enhancing operational efficiencies. The shift from price-based competition to a focus on technological advancement and supply chain reliability is evident. Moving forward, companies that prioritize innovation and customer-centric solutions are likely to differentiate themselves in an ever-evolving market.

Key Companies in the Canada B2C E commerce Market include

Industry Developments

Recent developments in the Canada B2C Ecommerce Market have highlighted the growing dominance of major players such as Shopify, Amazon, and Lululemon. In September 2023, Shopify announced a strategic partnership with Walmart to enhance cross-platform sales, allowing Canadian retailers greater access to Walmart's expansive customer base. Additionally, in August 2023, Lululemon reported significant growth, with a 30% increase in its e-commerce sales year-over-year, reflecting the brand's successful adaptation to changing consumer behaviors. 

The market saw a year-on-year growth of 15% in 2022, showcasing strong consumer demand for online shopping. In the mergers and acquisitions front, Home Depot completed its acquisition of a smaller Canadian tech firm in July 2023, aiming to bolster its digital services for Canadian customers. The rise of companies like Canadian Tire and Best Buy in the e-commerce sector also showcases the competitive landscape, as they continue to expand their online offerings. Overall, the Canada B2C Ecommerce Market remains robust, driven by innovation and evolving market strategies among its players.

Future Outlook

Canada B2C E commerce Market Future Outlook

The Canada B2C Ecommerce Market is projected to grow at an 8.87% CAGR from 2025 to 2035, driven by technological advancements, increased internet penetration, and evolving consumer preferences.

New opportunities lie in:

  • Integration of AI-driven personalized shopping experiences
  • Expansion of subscription-based delivery services
  • Development of mobile commerce platforms with enhanced security features

By 2035, the market is expected to be robust, reflecting substantial growth and innovation.

Market Segmentation

Canada B2C E commerce Market Product Category Outlook

  • Electronics
  • Clothing
  • Home Goods
  • Beauty Products
  • Food and Beverage

Canada B2C E commerce Market Shopping Behavior Outlook

  • Online Shopping Frequency
  • Preferred Payment Method
  • Return Policy Preference
  • Brand Loyalty
  • Discount Sensitivity

Canada B2C E commerce Market Consumer Demographics Outlook

  • Age Group
  • Gender
  • Income Level
  • Education Level
  • Family Size

Report Scope

MARKET SIZE 2024630.99(USD Billion)
MARKET SIZE 2025692.83(USD Billion)
MARKET SIZE 20351607.1(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)8.87% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledAmazon (CA), Walmart (CA), eBay (CA), Shopify (CA), Best Buy (CA), Canadian Tire (CA), Costco (CA), Loblaws (CA), Hudson's Bay (CA)
Segments CoveredProduct Category, Consumer Demographics, Shopping Behavior
Key Market OpportunitiesIntegration of advanced logistics solutions enhances efficiency in the Canada B2C Ecommerce Market.
Key Market DynamicsRising consumer preference for online shopping drives innovation and competition in Canada's B2C Ecommerce Market.
Countries CoveredCanada
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FAQs

What is the current valuation of the Canada B2C Ecommerce Market?

The market valuation was 630.99 USD Billion in 2024.

What is the projected market size for the Canada B2C Ecommerce Market by 2035?

The projected valuation for 2035 is 1607.1 USD Billion.

What is the expected CAGR for the Canada B2C Ecommerce Market during the forecast period 2025 - 2035?

The expected CAGR is 8.87% during the forecast period 2025 - 2035.

Which product category generated the highest revenue in the Canada B2C Ecommerce Market?

The Food and Beverage category generated 234.79 USD Billion in 2024.

How much revenue did the Electronics segment generate in 2024?

The Electronics segment generated 126.2 USD Billion in 2024.

What demographic factors influence consumer spending in the Canada B2C Ecommerce Market?

Factors such as Age Group, Gender, Income Level, Education Level, and Family Size are influential.

Which key player is recognized as a leader in the Canada B2C Ecommerce Market?

Amazon (CA) is recognized as a leading player in the market.

What was the revenue generated by the Clothing segment in 2024?

The Clothing segment generated 105.0 USD Billion in 2024.

How does consumer shopping behavior impact the Canada B2C Ecommerce Market?

Shopping behavior factors like Online Shopping Frequency and Brand Loyalty are critical, with revenues of 126.0 USD Billion and 126.0 USD Billion respectively in 2024.

What is the revenue generated by the Beauty Products segment in 2024?

The Beauty Products segment generated 75.0 USD Billion in 2024.

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