Canada E-commerce Market is estimated to grow at a 14.50 % CAGR From 2022 to 2027. Advanced infrastructure, high internet penetration, and an increasing number of card-based payment systems, among other factors, are driving the market.
- Amazon dominates the entire e-commerce and shopping sector, with a robust presence in Canada's computers and electronics category. Its success is mainly due to its breadth of offerings, ranging from electronics to books, streaming, and television. That is, Amazon Canada attracts a diverse range of customers.
- With its Canadian prices, Amazon Prime keeps things simple. If the client wants to use the service for a whole year, it will cost CA$79, or they can pay CA$7.99 per month. Prices have not risen in the same way they have in the United States. For those who like to crunch numbers, the annual rate works out to just CA$6.58 per month.
- Prime Video is the most influential streaming feature with Amazon Prime in Canada. It's a video platform with a library that can compete with Netflix and Hulu, but it can get lost in the shuffle of competitors. However, with an ever-expanding library of originals and premium channel integrations, Prime Video appears to be on the rise.
- An increase in the number of Canadians willing to use more advanced and non-traditional payment methods. In 2020, 43.2 % of Canadian phone users reported using a digital wallet, while another 20.4 % used the PayPal app to conduct financial transactions. Overall, Canadians are increasingly willing to embrace the world of e-commerce, are becoming more accepting of new and innovative payment methods, and are becoming more comfortable storing data and making purchases online.
- As COVID-19 ended in April 2020, retail sales fell while online shopping increased. Furthermore, other retail trade subsectors, such as furniture and home furnishings stores, sporting goods, hobby, clothing, and accessories stores, experienced much sharper declines in in-store sales from February to April 2020. E-commerce sales increased as in-store sales decreased in these subsectors.
- The COVID-19 pandemic has had a long-term impact on the retail industry. Small firms are increasingly transforming to e-commerce platforms and utilizing them in novel ways. The action of Canadians to continue using e-commerce or return to traditional purchasing techniques has the potential to change the structure of the retail trade industry in Canada. The retail landscape will undoubtedly influence.
Key Market Trends
Increasing internet users
- The Canadian E-commerce market is very similar to that of the United States, and it shares some of the same trends as retailers to the south. Hybrid purchases, "Click and Collect," and "omnichannel" consumers ordering products online and taking them home in a brick-and-mortar store seem to be two trends shaping the Canadian e-commerce market.
- The Canadian E-commerce market generally markets through social media because the return on investment by using social media is constantly improving, and retailers are increasingly spending marketing dollars on social media ads.
- The transition to mobile payments "mPOS (mobile Point-Of-Sale)" through technologies such as Apple Pay, Android Pay, and Google Pay - is growing in Canada. In addition, the ongoing rollout of 5G across Canada would also boost mobile commerce beyond 2020. Currently, coverage in cities is prioritizing. The following 5G spectrum auction in Canada has been postponed until June 2021 to prioritize existing connectivity during the 2020 pandemic.
- In Canada, there are several methods for internet shopping to collect a payment, the most common of which are credit card-based - Interac Online, MasterPass, and PayPal -. Still, some vendors also offer the option of prepaid cards or prepaid vouchers. MasterCard is the most popular credit card in Canada, accounting for a 53.6 % market share.
- In terms of consumer preferences, young Canadians are more willing to make mobile purchases and are more receptive to mobile advertisements. Another preference in Canada is for video advertising: according to Com Score, mobile commerce (m-commerce) is rising, owing to smartphones' and tablets' increasing mobile connectivity. Digital advertising has surpassed TV advertising revenues and is poised to become Canada's preferred advertising medium.
Amazon.ca is the dominant player in the Canadian E-commerce market. In 2021, the store's revenue was $8.3 billion. It is followed by walmart.ca, which has a revenue of $4.3 billion, and homedepot.ca, which has an income of $1.7 billion. The top three stores account for 40% of all online revenue in Canada.
- May 2022- The robotics facility, which Amazon called (new window) its most advanced technological supply chain in Canada, opened less than a month ago. In April, the company announced that it plans to open three more Ontario facilities in 2023.
- April 2022- Walmart Canada has joined the Stingray Retail Media Network, an music, media, and technology industry leader. Stingray would be responsible for exclusive sales representation of all in-store digital audio ad campaigns within the national Walmart Canada retail footprint, collaborating with the Walmart Connect sales team.
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