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Canada Business To Consumer E Commerce Market

ID: MRFR/ICT/57456-HCR
200 Pages
Garvit Vyas
October 2025

Canada Business to Consumer E-Commerce Market Research Report: By Product Category (Electronics, Fashion, Home Goods, Beauty and Personal Care, Grocery), By Sales Channel (Mobile Apps, Websites, Social Media, Marketplaces), By Payment Method (Credit Card, Digital Wallets, Bank Transfer, Cash on Delivery) and By Customer Demographics (Age Group, Gender, Income Level, Education Level) - Forecast to 2035.

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Canada Business To Consumer E Commerce Market Summary

As per MRFR analysis, the Canada business-to-consumer e-commerce market Size was estimated at 649.71 USD Billion in 2024. The Canada business to-consumer-e-commerce market is projected to grow from 704.61 USD Billion in 2025 to 1585.27 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 8.45% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Canada business to-consumer e-commerce market is experiencing dynamic growth driven by technological advancements and changing consumer preferences.

  • Mobile commerce continues to rise, with consumers increasingly using smartphones for online shopping.
  • Personalization and enhanced customer experience are becoming critical for retaining consumer loyalty in the e-commerce landscape.
  • Sustainability is gaining traction, as consumers show a preference for eco-friendly products and practices in their purchasing decisions.
  • Technological advancements and growing internet penetration are key drivers propelling the market forward.

Market Size & Forecast

2024 Market Size 649.71 (USD Billion)
2035 Market Size 1585.27 (USD Billion)
CAGR (2025 - 2035) 8.45%

Major Players

Amazon (US), Alibaba (CN), eBay (US), Walmart (US), JD.com (CN), Rakuten (JP), Target (US), Zalando (DE), Shopify (CA)

Canada Business To Consumer E Commerce Market Trends

The business to-consumer-e-commerce market in Canada is currently experiencing notable growth, driven by increasing consumer preferences for online shopping. This shift is influenced by advancements in technology, which enhance user experience and streamline purchasing processes. As more Canadians embrace digital platforms, businesses are adapting their strategies to meet evolving consumer demands. The convenience of online shopping, coupled with a diverse range of products, appears to be a key factor in this market's expansion. Furthermore, the rise of mobile commerce is reshaping how consumers interact with brands, suggesting a potential for further growth in this sector. In addition, the business to-consumer-e-commerce market is witnessing a surge in personalized shopping experiences. Companies are leveraging data analytics to tailor offerings to individual preferences, thereby enhancing customer satisfaction. This trend indicates a shift towards more customer-centric approaches, where businesses prioritize understanding consumer behavior. As the market continues to evolve, it is likely that innovations in technology and marketing strategies will further influence consumer engagement and purchasing patterns.

Rise of Mobile Commerce

The business to-consumer-e-commerce market is increasingly influenced by mobile commerce, as more consumers utilize smartphones for shopping. This trend indicates a shift in purchasing behavior, with mobile applications and responsive websites becoming essential for businesses aiming to capture this audience.

Personalization and Customer Experience

Personalization is becoming a cornerstone of the business to-consumer-e-commerce market, as companies focus on enhancing customer experiences. By utilizing data analytics, businesses can offer tailored recommendations, which may lead to increased customer loyalty and satisfaction.

Sustainability in E-Commerce

Sustainability is emerging as a significant consideration within the business to-consumer-e-commerce market. Consumers are increasingly seeking eco-friendly products and practices, prompting businesses to adopt sustainable practices in their operations and supply chains.

Canada Business To Consumer E Commerce Market Drivers

Growing Internet Penetration

The increasing accessibility of the internet is a pivotal driver for the business to-consumer-e-commerce market in Canada. As of November 2025, over 90% of Canadians have access to high-speed internet, facilitating seamless online shopping experiences. This widespread connectivity enables consumers from various demographics to engage with e-commerce platforms, thereby expanding the potential customer base for businesses. Furthermore, the rise of mobile internet usage, which accounts for approximately 60% of all online transactions, underscores the importance of optimizing e-commerce sites for mobile devices. This trend suggests that businesses that adapt to the growing internet penetration are likely to thrive in the competitive landscape of the business to-consumer-e-commerce market.

Shift in Consumer Preferences

Consumer preferences are evolving, significantly impacting the business to-consumer-e-commerce market in Canada. A growing number of consumers are prioritizing convenience, speed, and variety in their shopping experiences. Recent surveys indicate that nearly 75% of Canadians prefer online shopping due to its convenience compared to traditional retail. This shift is prompting businesses to enhance their online offerings, including faster delivery options and diverse product selections. Additionally, the demand for subscription services and personalized shopping experiences is on the rise, indicating that businesses must adapt to these changing preferences to remain competitive in the business to-consumer-e-commerce market.

Impact of Social Media Marketing

Social media platforms are playing an increasingly influential role in the business to-consumer-e-commerce market in Canada. With over 80% of Canadians actively using social media, businesses are leveraging these platforms to reach potential customers effectively. Social media marketing strategies, including influencer partnerships and targeted advertisements, are becoming essential for driving traffic to e-commerce sites. Data suggests that approximately 50% of Canadian consumers have made purchases directly through social media channels, highlighting the importance of integrating social media into e-commerce strategies. This trend indicates that businesses that harness the power of social media are likely to enhance their visibility and sales in the business to-consumer-e-commerce market.

Emphasis on Customer Trust and Security

In the business to-consumer-e-commerce market, customer trust and security are paramount. As online shopping continues to grow, consumers are increasingly concerned about data privacy and transaction security. Recent studies reveal that around 65% of Canadians are hesitant to shop online due to fears of data breaches and fraud. Consequently, businesses are prioritizing robust security measures, such as encryption and secure payment gateways, to build consumer confidence. Additionally, transparent return policies and customer service responsiveness are becoming critical factors in establishing trust. This emphasis on security and trustworthiness is likely to influence consumer choices and loyalty in the business to-consumer-e-commerce market.

Technological Advancements in E-Commerce

The business to-consumer-e-commerce market in Canada is experiencing a surge in technological advancements, which are reshaping consumer interactions and purchasing behaviors. Innovations such as artificial intelligence, augmented reality, and machine learning are enhancing the online shopping experience. For instance, AI-driven chatbots are providing real-time customer support, while augmented reality applications allow consumers to visualize products in their own space before making a purchase. According to recent data, approximately 70% of Canadian consumers express a preference for websites that utilize advanced technology to improve their shopping experience. This trend indicates that businesses investing in technology are likely to gain a competitive edge in the business to-consumer-e-commerce market.

Market Segment Insights

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

In the Canada business to-consumer-e-commerce market, the product category segment is primarily dominated by Electronics, which commands the largest market share. Fashion follows closely behind, with significant contributions to the overall growth of the segment. Both categories play crucial roles in the e-commerce landscape and cater to diverse consumer needs, influencing buying behavior and preferences. Looking towards future trends, the Fashion segment is recognized as the fastest-growing category, driven by advancements in online shopping technologies and changing consumer preferences toward style and convenience. Additionally, the rise of sustainable fashion and personalized shopping experiences are vital factors propelling this growth. As such, the Canada business to-consumer-e-commerce market is predicted to evolve with these dynamics, presenting new opportunities for businesses.

Electronics: Dominant vs. Fashion: Emerging

Electronics remains a dominant player within the Canada business to-consumer-e-commerce market, characterized by rapid technological advancements and a robust consumer demand for the latest gadgets. This category includes a wide array of products, such as smartphones, computers, and home appliances, prompting retailers to enhance their online presence to accommodate shifting shopping behaviors. On the other hand, Fashion is classified as an emerging segment, showcasing a trend toward diversity and personalized experience. The increasing importance of online fashion platforms, along with consumers' growing inclination toward trendy apparel, makes this category particularly dynamic. Overall, both segments showcase unique characteristics and appeal to distinct consumer bases, contributing significantly to the evolving e-commerce landscape.

By Sales Channel: Mobile Apps (Largest) vs. Marketplaces (Fastest-Growing)

In the Canada business to-consumer-e-commerce market, sales channels exhibit diverse market share distribution. Mobile Apps lead the segment, representing a significant share as consumer preferences increasingly shift towards mobile shopping experiences. Websites follow, providing a sturdy foundation with established customer bases. Social Media has gained traction recently, fueled by higher engagement, while Marketplaces are rapidly gaining ground, showing a robust appetite for online transactions due to the trust and convenience they offer. Growth trends within this segment are driven by changing consumer behaviors and advancements in technology. Mobile Apps continue to thrive as organic growth sources due to the increasing penetration of smartphones and high-speed internet. Marketplaces are witnessing swift expansion, propelled by the rising number of independent sellers and a growing emphasis on convenience and variety for consumers. This dynamic illustrates the evolving landscape of the retail market in Canada.

Websites (Dominant) vs. Social Media (Emerging)

Websites have long been a dominant force in the Canada business to-consumer-e-commerce market, providing enterprises with extensive consumer reach and a platform for comprehensive product presentation. Their established infrastructure and SEO capabilities enable effective customer acquisition and retention. In contrast, Social Media has emerged as a critical player, leveraging organic reach and advertising to create immersive shopping experiences. It caters to a demographic that values authenticity and peer influence, thus driving engagement and fostering brand loyalty. This juxtaposition showcases the strategic ways traditional and modern channels can work in unison to capture diverse consumer segments.

By Payment Method: Credit Card (Largest) vs. Digital Wallets (Fastest-Growing)

In the Canada business to-consumer-e-commerce market, the payment method segment showcases a diverse set of preferences among consumers. Credit cards hold the largest share, favored for their convenience and widespread acceptance. On the other hand, digital wallets have started gaining significant traction, appealing to tech-savvy consumers looking for faster and more secure transactions. Bank transfers and cash on delivery, while still present, have seen a decline in popularity as digital alternatives grow. The growth trend within this segment is driven by the increasing adoption of technology and changing consumer behaviors. Digital wallets are emerging as the fastest-growing payment method, driven by the rise of mobile commerce and the need for contactless solutions. Factors such as improved security measures, rewards programs, and integration with mobile devices further propel the shift from traditional methods to digital platforms, indicating a promising future for online payments.

Credit Card: Dominant vs. Digital Wallets: Emerging

Credit cards remain the dominant payment method in the Canada business to-consumer-e-commerce market due to their established trust and perceived security. They offer flexibility and are often associated with additional benefits such as reward points and cashback, making them a preferred choice for many consumers. Conversely, digital wallets represent an emerging trend, driven by their user-friendly interfaces and the increasing demand for instant payment solutions. As consumers become more familiar with using their smartphones for transactions, digital wallets are evolving rapidly, offering features like peer-to-peer transfers and integration with loyalty programs. This dynamic interplay between established methods and innovative technologies is set to shape the future landscape of payment preferences.

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

In the Canada business to-consumer-e-commerce market, the distribution of customer demographics reveals that the age group segment commands the largest share, representing a significant portion of online consumers. This dominance is influenced by the increasing adoption of digital shopping practices among younger consumers while older demographics are gradually catching up with technological trends. Gender dynamics show that while there are notable differences in shopping preferences, they contribute equally to overall market growth. Growth trends indicate that the income level segment is the fastest-growing category, as higher disposable incomes enable more consumers to engage in e-commerce. As economic conditions improve, the demand for online shopping is expected to surge. Additionally, the integration of mobile commerce and targeted marketing strategies tailored toward specific demographics further drives e-commerce growth in Canada.

Age Group: 18-34 (Dominant) vs. Income Level: $75K+ (Emerging)

The 18-34 age group emerges as the dominant segment within the Canada business to-consumer-e-commerce market, characterized by their comfort and familiarity with online shopping platforms. This demographic is driven by technology and seeks convenience, variety, and competitive pricing, making them avid online shoppers. On the other hand, the income level of $75K+ represents an emerging segment, with consumers in this bracket increasingly shopping online due to their higher disposable incomes. These consumers tend to prefer premium products and personalized shopping experiences, contributing to the overall growth of e-commerce. As both segments evolve, businesses must adapt their strategies to meet the distinctive preferences and behaviors exhibited by these groups.

Get more detailed insights about Canada Business To Consumer E Commerce Market

Key Players and Competitive Insights

The business to-consumer-e-commerce market in Canada is characterized by a dynamic competitive landscape, driven by rapid technological advancements and shifting consumer preferences. Major players such as Amazon (US), Shopify (CA), and Walmart (US) are at the forefront, each employing distinct strategies to enhance their market positioning. Amazon (US) continues to innovate with its Prime membership, which now includes expanded delivery options and exclusive content, thereby reinforcing customer loyalty. Shopify (CA) focuses on empowering small and medium-sized enterprises (SMEs) through its platform, facilitating seamless online store creation and management. Meanwhile, Walmart (US) is leveraging its extensive physical store network to enhance its e-commerce capabilities, integrating online and offline shopping experiences to attract a broader customer base.

The market structure appears moderately fragmented, with a mix of established giants and emerging players. Key tactics such as localizing manufacturing and optimizing supply chains are prevalent among these companies, allowing them to respond swiftly to consumer demands and market fluctuations. The collective influence of these major players shapes a competitive environment where agility and responsiveness are paramount, fostering a landscape that encourages innovation and customer-centric strategies.

In October 2025, Shopify (CA) announced a strategic partnership with a leading logistics provider to enhance its fulfillment capabilities. This move is likely to streamline operations for its merchants, enabling faster delivery times and improved customer satisfaction. Such partnerships are crucial in an era where consumers increasingly expect rapid and reliable service, positioning Shopify as a formidable competitor in the e-commerce space.

In September 2025, Amazon (US) unveiled its latest AI-driven recommendation engine, which personalizes shopping experiences based on individual consumer behavior. This technological advancement not only enhances user engagement but also drives sales conversions, indicating Amazon's commitment to leveraging data analytics for competitive advantage. The integration of AI into e-commerce operations is becoming a defining characteristic of successful players in the market.

In August 2025, Walmart (US) expanded its online grocery delivery service, now covering over 90% of Canadian households. This strategic expansion reflects Walmart's focus on meeting the growing demand for online grocery shopping, particularly among urban consumers. By capitalizing on its existing infrastructure, Walmart is likely to strengthen its market share and enhance customer loyalty through convenience and accessibility.

As of November 2025, current trends in the business to-consumer-e-commerce market include a pronounced emphasis on digitalization, sustainability, and AI integration. Strategic alliances are increasingly shaping the competitive landscape, enabling companies to pool resources and expertise. Looking ahead, competitive differentiation is expected to evolve, with a shift from price-based competition towards innovation, technology, and supply chain reliability. Companies that can effectively harness these trends will likely emerge as leaders in the market.

Key Companies in the Canada Business To Consumer E Commerce Market market include

Industry Developments

Recent developments in the Canada Business to Consumer E-Commerce Market have shown significant growth, particularly in the context of the post-pandemic landscape. For instance, Shopify has continued to expand its services, aiding merchants with advanced features and integrations to enhance online sales. Well.ca is also reporting a rise in organic health and wellness products, reflecting changing consumer preferences towards sustainable choices. In August 2023, Canadian Tire announced plans to invest approximately CAD 3 billion in its digital and store operations to improve customer experiences.

Notable mergers and acquisitions include the acquisition of Well.ca by the Canada-based Loblaws in July 2023, aimed at boosting their online offerings. In terms of market valuation, companies like Amazon and Walmart have seen substantial increases, driven by their expansive product offerings and innovative tech implementations in response to shifting consumer behavior. Last year, in June 2022, Lowe's Canada acquired the online business of RONA to strengthen its e-commerce strategy, demonstrating their commitment to the digital marketplace. These trends highlight a dynamic environment within Canada’s rapidly evolving e-commerce sector, signaling robust opportunities for growth and adaptation among leading retailers.

Future Outlook

Canada Business To Consumer E Commerce Market Future Outlook

The business to-consumer-e-commerce market in Canada is projected to grow at an 8.45% CAGR from 2024 to 2035, driven by technological advancements, changing consumer behaviors, and increased online shopping.

New opportunities lie in:

  • Integration of AI-driven personalized shopping experiences
  • Expansion of subscription-based delivery services
  • Development of mobile-first e-commerce platforms

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

Market Segmentation

Canada Business To Consumer E Commerce Market Sales Channel Outlook

  • Mobile Apps
  • Websites
  • Social Media
  • Marketplaces

Canada Business To Consumer E Commerce Market Payment Method Outlook

  • Credit Card
  • Digital Wallets
  • Bank Transfer
  • Cash on Delivery

Canada Business To Consumer E Commerce Market Product Category Outlook

  • Electronics
  • Fashion
  • Home Goods
  • Beauty and Personal Care
  • Grocery

Canada Business To Consumer E Commerce Market Customer Demographics Outlook

  • Age Group
  • Gender
  • Income Level
  • Education Level

Report Scope

MARKET SIZE 2024 649.71(USD Billion)
MARKET SIZE 2025 704.61(USD Billion)
MARKET SIZE 2035 1585.27(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 8.45% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Billion
Key Companies Profiled Amazon (US), Alibaba (CN), eBay (US), Walmart (US), JD.com (CN), Rakuten (JP), Target (US), Zalando (DE), Shopify (CA)
Segments Covered Product Category, Sales Channel, Payment Method, Customer Demographics
Key Market Opportunities Integration of artificial intelligence to enhance personalized shopping experiences in the business to-consumer-e-commerce market.
Key Market Dynamics Rising consumer preference for personalized shopping experiences drives innovation in the business to-consumer-e-commerce market.
Countries Covered Canada

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FAQs

What is the current market size of the Canada Business to Consumer E-Commerce Market?

In 2024, the market is expected to be valued at 326.2 million USD.

What is the projected market size for the Canada Business to Consumer E-Commerce Market by 2035?

By 2035, the overall market is anticipated to reach 867.4 million USD.

What is the expected CAGR for the Canada Business to Consumer E-Commerce Market from 2025 to 2035?

The market is expected to grow at a CAGR of 9.298% during this period.

What are the key product categories in the Canada Business to Consumer E-Commerce Market?

The main product categories include Electronics, Fashion, Home Goods, Beauty and Personal Care, and Grocery.

Which product category is expected to be the largest in the Canada Business to Consumer E-Commerce Market by 2035?

Electronics is projected to be the largest category, valued at 200.0 million USD by 2035.

What is the market value for the Beauty and Personal Care segment in 2024?

The Beauty and Personal Care segment is valued at 55.0 million USD in 2024.

Who are the major players in the Canada Business to Consumer E-Commerce Market?

Key players include Hudsons Bay Company, Shopify, eBay, Amazon, Best Buy, and Walmart among others.

What is the expected market size for the Grocery segment by 2035?

The Grocery segment is projected to reach 147.4 million USD by 2035.

What challenges does the Canada Business to Consumer E-Commerce Market face?

Challenges may include competition, supply chain issues, and changing consumer preferences.

How is the market expected to evolve in terms of online shopping trends?

The market is expected to evolve with a focus on personalization, customer experience, and mobile shopping.

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