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4 Key Trends of Emerging E-Commerce in Canada

With over 27 million eCommerce users, Canada ranks as the ninth largest eCommerce market globally. With advanced infrastructure, high internet penetration, and the increasing popularity of card-based payment systems, According to Statista report, Canada is contributing significantly to the global eCommerce growth rate of 17.0% in 2023. Canada\’s eCommerce market is experiencing tremendous growth, due to technological advancements, changing consumer preferences, and the impact of the COVID-19 pandemic.

Experts predict that the Canadian eCommerce market will gain a compound annual growth rate (CAGR) of 14.50% from 2022 to 2027. In fact, Canada alone is expected to see a remarkable 19.1% increase in eCommerce sales this year. This thriving market presents incredible opportunities for businesses to expand their online presence and meet the evolving needs of consumers.

Let\’s dive into four key trends that are shaping the future of eCommerce in Canada.

Trend 1: Fashion emerges as the most popular e-commerce product

Fashion takes the lead as the most sought-after category in Canada. It is closely followed by electronics and media products. Prominent online clothing stores, such as Gap Canada, Hudson\’s Bay Company, Amazon Canada, Zara, and Walmart, continue to capture the attention of fashion-conscious consumers. Interestingly, demographics showed (ages 53-72), Gen X-ers (ages 38-52), and Millennials (ages 24-37) form the largest consumer demographics in the Canadian online shopping scene

Trend 2: Rise of Mobile Commerce and Payment Technologies

In Canada Mobile commerce, or m-commerce, is on its way to rise and shine. Apple Pay, Android Pay, and Google Pay have facilitated the transition to mobile payments. Additionally, the ongoing rollout of 5G across Canada is expected to boost mobile commerce in the coming years further.

It is estimated that digital wallets will account for 27% of online payments by 2025. With the comfort and convenience of online shopping, Canadians are purchasing a variety of goods from U.S.-based merchants, including apparel, books, consumer electronics, toys, and groceries

Trend 3: Growing B2C E-commerce

Business-to-Consumer (B2C) e-commerce has gained significant traction in Canada, driven by a major disruption in retail channels. The number of e-commerce users in Canada surpassed 27 million in 2022, accounting for three-quarters of the country\’s population. This figure is projected to grow to 77.6% by 2025.

Trend 4: Expansion of Cross-Border E-commerce

Only three percent of Canada\’s e-commerce revenue is expected from cross-border transactions in 2023. Most Canadian online shoppers still prefer supporting domestic businesses over shopping across borders.

With advancements in logistics and supply chain management, Canadian consumers have access to a wide range of products from international markets. According to the Global B2C cross-border e-commerce market size 2021-2030 research Published by Marina Pasquali, Mar 28, 2023 The global B2C cross-border e-commerce market is expected to reach a value of 7.9 trillion U.S. dollars by the year 2030. In 2021, the cross-border online shopping sector was valued at roughly 785 billion U.S. dollars

Conclusion

The future of e-commerce in Canada looks promising, driven by technological advancements, increasing internet penetration, and evolving consumer preferences. Trends such as the rise of mobile commerce, growing B2C e-commerce, cross-border shopping, and the dominance of key players will shape the Canadian e-commerce landscape. Retailers and businesses need to adapt to these trends, focusing on digital strategies and enhancing the overall customer experience to thrive in this dynamic market.

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