The Canadian e-commerce industry has grown rapidly over the past decade, with 2025 marking an important year for digital change. As businesses and consumers adapt to new technologies, the market continues to evolve. This article provides a complete look at the Canadian e-commerce market in 2025, covering platform usage, consumer behavior, new trends, and key market factors.
The Growth of E-commerce in Canada
Market Expansion and Digital Adoption
Canada’s e-commerce sector has expanded steadily, with more businesses moving to online platforms. According to recent studies, e-commerce sales in Canada are expected to go beyond $100 billion in 2025. This growth is due to a rise in online shopping, better digital payments, and increased cross-border sales.
Several factors have contributed to this expansion, including:
High internet use, with over 94% of Canadians having access to the internet.
Increased use of mobile devices for online shopping.
Improved digital payment options, including cryptocurrency adoption.
Leading E-commerce Platforms in Canada
The Canadian e-commerce market is led by several key platforms, each serving different business needs and customer preferences.
Amazon Canada – The top marketplace, making up over 35% of total e-commerce sales.
Shopify – A Canadian company that helps small and medium-sized businesses build online stores.
Walmart Canada – A growing competitor offering strong logistics support.
eBay Canada – Popular for consumer-to-consumer (C2C) and small business sales.
Costco and Best Buy – Leading in niche markets such as wholesale and electronics.
Consumer Behavior Trends in 2025
Rise of Mobile Commerce (M-Commerce)
More and more Canadians prefer shopping through their mobile devices. In fact, 70% of online purchases are now made using smartphones and tablets. Because of this, retailers are improving their websites for mobile users, adding AI-driven suggestions, and using chatbots for customer support.
The Role of Digital Wallets and Payment Innovations
Traditional credit and debit card payments are being replaced by digital wallets and contactless payment options. Popular choices include:
Apple Pay, Google Pay, and PayPal – Leading the digital payment market.
Cryptocurrency payments – More retailers are starting to accept them.
Buy Now, Pay Later (BNPL) services – A growing trend among younger buyers.
Sustainable and Ethical Shopping
Canadian consumers are also paying more attention to sustainability when making purchases. Many shoppers now prefer businesses that offer eco-friendly packaging, carbon-neutral shipping, and ethically sourced products.
Emerging Market Trends
AI and Personalization in E-commerce
Artificial intelligence (AI) is transforming e-commerce by offering personalized shopping experiences. Retailers are using AI to analyze customer data, predict trends, and manage inventory more effectively.
Augmented Reality (AR) and Virtual Shopping
AR technology is helping shoppers see products in real-time, making online shopping more interactive. Companies like IKEA and Lululemon have added AR tools to improve customer engagement.
Social Commerce and Influencer Marketing
Social media platforms like Instagram, TikTok, and Facebook are now essential for e-commerce. Many brands use influencer marketing and live shopping events to increase sales and attract loyal customers.
Challenges and Opportunities in the Canadian E-commerce Market
Logistics and Supply Chain Management
As e-commerce grows, fast and efficient delivery services are becoming more important. To meet customer expectations, retailers are investing in:
Same-day and next-day delivery services.
Autonomous delivery systems, including drones and self-driving vehicles.
Sustainable shipping options to reduce environmental impact.
Cybersecurity and Data Protection
With more online transactions, cybersecurity risks are also rising. To protect consumer data, Canadian businesses must focus on:
Strong cybersecurity measures.
Compliance with Canadian privacy laws (PIPEDA and provincial rules).
Multi-factor authentication (MFA) and biometric security tools.
Cross-Border E-commerce Expansion
With rising interest in international shopping, Canadian businesses are expanding sales beyond the country. The United States is Canada’s largest e-commerce trade partner, followed by the UK, China, and Australia. To grow globally, businesses are using international marketplaces and improving logistics for faster shipping.
The Future of E-commerce in Canada
Government Regulations and Digital Economy Policies
The Canadian government is supporting digital commerce through new policies, including:
Lower e-commerce taxes for small businesses.
Investments in digital infrastructure to improve internet access.
Stronger consumer protection laws to ensure fair business practices.
The Role of AI and Automation in Retail
Looking ahead, AI-driven automation will play a big role in Canadian e-commerce. We can expect:
AI-powered virtual assistants to improve customer service.
Automated warehouses to lower costs and speed up fulfillment.
Blockchain technology to create more transparent supply chains.
Conclusion
The Canadian e-commerce market in 2025 is constantly changing, with new platforms, advanced technology, and shifting customer habits shaping the industry. To stay competitive, businesses must embrace innovation and adapt to changing trends. As mobile commerce, AI, and sustainability become more important, the future of Canadian e-commerce will focus on convenience, security, and efficiency for both businesses and consumers.
