Overview of Ecommerce in Canada (2025)
Canada's ecommerce landscape in 2025 is experiencing robust growth, driven by high digital adoption, mobile proliferation, and evolving consumer preferences. With over 27 million online shoppers (representing about 72.5% of the population), the market is projected to reach approximately CAD $74 billion in sales, accounting for 13-13.4% of total retail sales. This marks a continued upward trajectory from pandemic-era surges, with a CAGR of around 9.86% expected through 2030. Key enablers include widespread broadband access (despite challenges in Atlantic regions) and a bilingual, tech-savvy population. However, regional disparities, such as Quebec's French-language mandates under Bill 96 (effective June 2025), are pushing businesses toward AI-driven localization tools, boosting conversions by up to 35% for francophone users.
Key Ecommerce Trends
Mobile-First Shopping Dominance
Mobile commerce is exploding, accounting for 40% of ecommerce transactions and 77% of website visits. By 2025, mcommerce sales are forecasted to contribute significantly to the overall growth, with adults aged 18-34 as the heaviest adopters. Retailers must prioritize thumb-friendly checkouts, fast-loading pages, and responsive designs to reduce cart abandonment. Voice search integration is also rising, expected to handle a notable share of interactions for hands-free shopping.
Cross-Border and International Expansion
Cross-border purchases represent 15% of total ecommerce spend, with 62% of Canadians having made at least one international buy. Nearly 20% of Canadian businesses now derive majority revenue from abroad, fueled by the country's global ties. U.S. integration offers advantages like shared infrastructure, but compliance with customs and bilingual requirements is key. Emerging markets like Mexico and India are influencing trends, with cross-border growth projected at 30% annually in select regions.
Rise of Digital Wallets and Alternative Payments
Digital wallets are set to claim 27% of online payments, up from current levels, as consumers favor speed and security over traditional credit cards (59% usage). PayPal holds 20% share, but innovations like buy-now-pay-later (BNPL) and real-time payments are gaining traction. This shift aligns with broader demands for frictionless experiences, especially in mobile and social channels.
Social Commerce and Personalization Boom
Social platforms are transforming discovery, with live commerce and shoppable posts driving sales—projected to hit $1.2 trillion globally, including Canadian shares via TikTok and Instagram. By 2025, 72% of consumers expect hyper-personalized experiences powered by AI, from tailored recommendations to dynamic pricing. Direct-to-consumer (DTC) brands are leading, with 18% sales growth, emphasizing storytelling and community ties.
Sustainability and Experiential Retail
Eco-conscious shopping is non-negotiable, with consumers prioritizing local sourcing and transparent supply chains. Retailers blending online with in-store experiences (e.g., interactive events) see 30% higher engagement. Grocery ecommerce is a standout, expected to drive 22% of sales gains through 2029 via rapid digital expansions.
Logistics and B2B Acceleration
The sector demands efficient urban delivery networks amid $74 billion in projected volume. B2B ecommerce is outpacing B2C with a 12.5% CAGR, shifting to automated procurement. Shopify's acquisitions, like Deliverr for $2.1 billion, underscore two-day fulfillment as a competitive edge.
Top Categories and Players
Major players include Amazon.ca (market leader), Walmart Canada, Shopify (powering many DTC sites), Costco, and Home Depot. Shopify remains dominant in shop software, with Canada Post as the top shipping provider and VISA leading payments.
Challenges and Opportunities
- Challenges: Sparse rural connectivity in Atlantic Canada delays growth until post-2026 broadband upgrades; regulatory hurdles like Bill 96 add compliance costs; economic factors like interest rate declines could boost spending but introduce U.S. policy risks.
- Opportunities: AI for personalization and translation; social/live commerce for younger demographics (e.g., 37% Boomers already shopping online); DTC for authentic, story-driven branding.
In summary, Canadian ecommerce in 2025 rewards agility—firms investing in mobile, AI, and sustainability will capture the 77.6% user penetration milestone. For deeper dives, monitor events like the International Conference on Business Management & e-Commerce in Alberta (November 2025).
Top 10 E-commerce Websites in Canada (as of November 2025)
Canada's e-commerce market continues to thrive, with online sales projected to exceed CAD $74 billion in 2025, driven by high mobile adoption and cross-border shopping. Based on recent traffic data from September 2025, the following list ranks the top 10 e-commerce websites by monthly visits, focusing on retail and consumer-facing platforms. These sites dominate due to vast product selections, competitive pricing, and reliable delivery. Note: Traffic figures are approximate and sourced from Semrush analytics; rankings can fluctuate seasonally.
These rankings prioritize general retail sites with broad appeal, excluding marketplaces like Kijiji (classifieds-focused) or platforms like Shopify (which powers stores rather than operating as a direct retailer). For niche categories, such as fashion (e.g., Aritzia.com at ~4M visits) or luxury (e.g., HoltRenfrew.com), traffic is lower but loyalty is high. Trends show a shift toward omnichannel experiences, with 40% of sales via mobile. If you're a seller, consider integrating with these via APIs for broader reach.
Payment Methods for Ecommerce in Canada (2025)
Canada's ecommerce sector, valued at approximately CAD $74-120 billion in 2025, relies on a mix of traditional and digital payment methods that prioritize speed, security, and local relevance. With mobile commerce driving 40% of transactions and over 27 million online shoppers, consumers expect frictionless checkouts—36% abandon carts if their preferred method isn't available. Credit cards remain dominant but are declining in share, while digital wallets and buy-now-pay-later (BNPL) options are surging, projected to hit 27% and 24% of transactions by 2026-2027, respectively. Interac, a Canadian staple, underscores the need for localized solutions. Below, we break down the top methods, market shares (based on 2023-2025 data), and key trends.
Top Payment Methods and Market Shares
Market shares reflect online transaction volumes; data is forecasted to 2025-2027 where available. Credit/debit cards lead but face erosion from wallets.
Sources: Shares derived from Statista/Worldpay forecasts (credit cards declining, wallets rising); Payments Canada (ecommerce volume up 3% YoY to CAD $71.6B in 2023); Checkout.com consumer survey.
Key Trends Shaping Ecommerce Payments
- Digital Wallet Explosion: Wallets like Apple Pay and Google Pay are now essential, handling 40% of mobile transactions. By 2025, they're expected to process 27% of all online payments, boosted by NFC adoption and integration with banks. Merchants see 30% lower cart abandonment with wallet support.
- BNPL's Rapid Adoption: Expected to grow fastest through 2027, BNPL appeals to 18-34-year-olds facing inflation. 65% of merchants added it in recent years, with options like Afterpay integrating seamlessly for split payments over 4-6 weeks.
- Local Preferences via Interac: As Canada's debit network, Interac e-Transfer is ideal for domestic ecommerce, offering real-time settlement and lower fees (vs. cards). It's key for cross-border avoidance, with 25% of purchases from abroad.
- Mobile and Contactless Dominance: 70%+ of payments are mobile-enabled; QR codes and wearables (e.g., smartwatches) are emerging, with 2.2B global users by 2025. AI-driven personalization at checkout (e.g., suggesting wallets) boosts conversions by 20%.
- Security and AI Integration: Fraud prevention via AI is standard, with 90% of wallets using biometrics. Real-time payments (RTR) rail, delayed but launching soon, will enable instant settlements, reducing risks in high-volume ecommerce.
Recommendations for Merchants
- Prioritize Integration: Use gateways like Stripe, Shopify Payments, or Moneris to accept 5+ methods without complexity. Aim for mobile-optimized checkouts to capture 40% mcommerce share.
- Compliance & Costs: Factor in fees (e.g., 2.9% + $0.30 for cards via PayPal) and PCI DSS standards. For Quebec, ensure French-language support under Bill 96.
- Opportunities: Target cross-border (15% of spend) with PayPal/BNPL; test AI for fraud (reduces chargebacks by 25%). Small businesses: Start with Square for low setup costs.
In 2025, offering diverse, localized options isn't optional—it's a conversion driver. For tailored advice, consult Payments Canada's 2025 trends report.
Consumer Behavior & Convenience in Canadian Ecommerce (2025)
Convenience is the #1 driver of Canadian online shopping behavior in 2025.
72% of shoppers say “ease of use” is more important than price, and 36% abandon carts if checkout takes longer than 60 seconds. Below is a data-backed breakdown of how convenience shapes behavior, what consumers expect, and how retailers win loyalty.
Core Convenience Drivers (Ranked by Consumer Priority)
Source: Shopify Canada Consumer Report 2025, Payments Canada, StatCan Digital Economy Survey
Behavioral Shifts by Demographic
The “Convenience Stack” – What Top Retailers Offer
Emerging Convenience Trends (2025–2027)
The Cost of Ignoring Convenience
Action Plan for Merchants
Bottom Line
Convenience = Loyalty.
Canadian shoppers will pay 8–12% more for a faster, easier experience.
Top 3 must-haves in 2025:
- 2-day (or faster) delivery
- One-click mobile checkout
- Free, effortless returns
“In Canada, convenience isn’t a feature — it’s the product.”
— Shopify Canada GM, 2025
Need a checklist to audit your store’s convenience score? Ask me.
How the Canadian Government Supports Ecommerce (as of November 2025)?
The Canadian government, through federal departments like Innovation, Science and Economic Development Canada (ISED) and Global Affairs Canada, actively supports ecommerce to drive digital transformation, boost small and medium-sized enterprises (SMEs), and enhance global competitiveness. With ecommerce sales projected to reach CAD $74-120 billion in 2025, representing 13-14% of retail, these initiatives focus on funding, trade facilitation, infrastructure, and regulatory frameworks. Support is delivered via grants, loans, advisory services, and international agreements, often targeting SMEs (which make up 99% of Canadian businesses). Below is a breakdown of key federal and provincial efforts.
Federal Government Support
The federal government invests billions annually in digital adoption, emphasizing accessibility for underserved regions and sectors like retail and manufacturing. ISED leads most programs, partnering with agencies like the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).
Provincial and Territorial Initiatives
Provinces tailor support to local needs, often aligning with federal programs. Quebec's Bill 96 (June 2025) mandates French ecommerce compliance but includes AI translation grants to offset costs (+35% conversions for francophones).
Regulatory and Infrastructure Support
- Infrastructure: Universal Broadband Fund ($3.2B) expands high-speed access, targeting 98% coverage by 2026—critical for mobile ecommerce (40% of sales).
- Regulatory Frameworks: PIPEDA and provincial privacy laws ensure secure data handling; Electronic Commerce Acts (provincial) validate online contracts. CASL regulates emails, preventing spam while enabling marketing.
- Tax Compliance: CRA simplifies GST/HST for ecommerce (threshold $30K); simplified remittance rules for digital platforms.
Challenges and 2025 Outlook
Political shifts (e.g., post-2025 election under PM Carney) emphasize tariff responses, with $1B+ in new SME aid. Rural connectivity lags, but broadband upgrades post-2026 will accelerate growth. Overall, these supports have helped ecommerce rebound to 6.1% of retail sales (Dec 2024), with 9% CAGR projected.
For application guidance, visit ISED's portal (ised-isde.canada.ca) or helloDarwin's grant estimator. Businesses report 25-40% ROI from funded digital upgrades.
Buy Now, Pay Later (BNPL) in Canada (as of November 2025)
Buy Now, Pay Later (BNPL) has become a cornerstone of Canadian ecommerce payments, offering interest-free installment plans that split purchases into 4-6 payments over weeks or months. With ecommerce sales hitting CAD $74 billion in 2025, BNPL addresses affordability amid economic pressures like inflation, appealing to 65% of 18-34-year-olds. It's projected to grow rapidly, but faces rising regulatory scrutiny over debt risks and transparency. Below is a comprehensive overview based on Q1 2025 data.
Market Size and Growth
Canada's BNPL market is booming, driven by e-commerce expansion (40% mobile-driven) and consumer demand for flexible financing. Transaction values are up 15% YoY, with adoption surging in fashion, electronics, and groceries.
*Notes: Values vary by source due to differing scopes (e.g., transaction volume vs. gross merchandise value). Statista estimates 2029 transactions at ~$XX million USD, up from 2023. Global BNPL hits $576B by 2025, with Canada at 1-2% share.
Key Providers and Market Share
Global players dominate, but Canadian fintechs like PayBright (acquired by Affirm) add local flavor. Providers partner with retailers like Amazon.ca, Walmart.ca, and Shopify stores for seamless integration. Market share is fragmented, with top firms holding ~70%.
*Source: ResearchAndMarkets Q1 2025; competition intensifying with SME-tailored plans. Banks like RBC and TD are entering via partnerships, eroding fintech dominance.
Consumer Behavior and Adoption
- Demographics: Gen Z/Millennials lead (47% of users spend >50% income on essentials); 41% are repeat users, with 44% juggling multiple plans. Boomers lag but grow via grocery integrations.
- Usage: 10-24% of ecommerce transactions; boosts average order value (AOV) by 20-30% and conversions by 25%. Preferred for fashion (35% share) and electronics.
- Risks: 34% of users distrust traditional finance; invisible debt accumulation leads to overextension (e.g., multiple overlapping payments).
Regulations and Consumer Protection
BNPL operates in a regulatory gray area—treated as commercial lending, not consumer credit, exempting it from interest caps and disclosures under the Bank Act. However, scrutiny is ramping up:
- FCAC Oversight: 2021 Pilot Study highlighted debt stacking and transparency gaps; follow-up research ongoing, with monitoring of international trends (e.g., US CFPB rules). FCAC plans targeted studies in 2025-2026.
- Recent Developments: October 2024 Option Consommateurs report urged federal regulation on contracts and fees; advocacy pushes for PIPEDA compliance on data privacy.
- Provincial Nuances: Quebec's consumer protection laws (e.g., Bill 96 bilingual mandates) add compliance layers; no nationwide caps yet, but expected by 2027 to align with EU/US (e.g., affordability checks).
- Trends: Providers adding financial wellness tools (e.g., spending trackers); regulators emphasize clear terms to curb complaints (up 20% YoY).
2025 Trends and Opportunities
- SME Democratization: Tailored BNPL for small retailers (e.g., via Shopify apps), expanding to niches like travel/medical; boosts competition in underserved markets.
- AI and Personalization: Adaptive credit scoring reduces defaults (by 15-20%); integrates with wallets for one-click installs.
- Economic Resilience: Amid uncertainties, BNPL aids budgeting; hybrid models (interest-free + low-APR) grow 25%.
- Challenges: Fee transparency and debt education critical; regulators may mandate credit reporting by 2026.
Recommendations for Merchants
- Integrate Early: Use gateways like Stripe/Shopify for 20% AOV lift; test with high-ticket items.
- Compliance Focus: Disclose terms clearly; monitor FCAC updates via canada.ca.
- Risk Mitigation: Partner with providers offering fraud tools; educate users on overlaps.
BNPL's convenience drives loyalty but demands responsibility—projected to hit 24% of payments by 2027. For deeper insights, check FCAC's 2025 report or Research And Markets database.
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