A Breakout Year for Canadian eCommerce

April 14, 2014

By: Magento Partners,


A Breakout Year for Canadian eCommerce

How will you remember 2013 if asked five years from now? For us, 2013 will go down as the year that eCommerce finally hit the Canadian retail industry by storm.

In 2013, the total Canadian online expenditure was $20 billion dollars or an average of $1,130 per Canadian. According to MasterCard Advisors, Canadian consumers spent $2.8 billion shopping online in December alone, representing about 6.6% of the month’s total retail sales. December’s online sales were up 26% over the previous year.

Why Online Shopping is Finally Starting to Click in Canada

The booming growth in online retail comes down to three main drivers:

1. Canadians are adopting online shopping in record numbers
2. The number of retail players in Canadian eCommerce continues to increase.
3. Online retailers now offer Canadian consumers an enhanced online shopping experience (e.g. delivery, customer support and returns)

Collectively, these factors are propelling consistent growth in Canadian eCommerce overall—across all regions of the country—and driving massive growth in key industries, including fashion, and health and beauty. To see how fully Canadians are embracing the online world, you really don’t need to look beyond year-over-year growth in parcel volumes. In a recent study by Canada Post, data derived from 2,000 companies across eight industries highlights the increase in parcel volume from 2012 to 2013:

• Mass merchants (+21%)
• Health and beauty (+27%)
• Fashion (+25%)

What’s In Store for Online Retailing in Canada?

The good news for retailers is that, according to industry expressive, the impressive stats show no sign of abating—quite the opposite in fact. Research by Forrester predicts that, by 2018, the average Canadian online spend will be 37%. Total Canadian online retail expenditures will burgeon to $34 billion or an average of $1,552 per Canadian.

If you’re looking to get into the Canadian market, these numbers should be encouraging. If you’re already in Canada, keep up the good work.

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