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CANADIAN E-COMMERCE MARKET GUIDE

October 15, 2021
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Canada’s e-commerce market is a hidden treasure just waiting to be found. Online shopping is really starting to take off among Canadians due to the pandemic. This is your chance to get in and build up a customer base while there isn’t as much competition as in other markets.

Overview of Canada

  • The official language is English and French
  • Other common languages spoken are German, Italian, Tagalog, Spanish, and Arabic, and 11 different indigenous languages
  • Population: 35.1 Million
  • Proud of its multicultural population
  • Highest immigration rates of any other country
  • 81% of the population, or 29.8 million people, have Internet access
  • Most educated country in the world
  • The literacy rate is 99%
  • Technically still part of the British monarchy
  • Was legally dependent on the UK until 1982
  • Government is a federal parliamentary democracy
  • Shares border with the US
  • National Capital: Ottawa
  • Ottawa is the fourth largest city
  • Has 48 national parks
  • 2nd largest country in the world geographically
  • Top sports: Lacrosse (their national sport), Ice Hockey, Basketball, Ice Skating, Cross-Country Skiing, and Curling
  • Known for fishing and hunting
  • Holidays: National Aboriginal Day, Canada Day, Christmas, Boxing Day
  • There are more doughnut shops in Canada per capita than in any other country
  • Hawaiian Pizza was first made in Ontario in 1962
  • Has the longest coastline in the world
  • National animal: Beaver
  • The use of the Maple Leaf symbol is tied back to the 18th century
  • Landmarks: Niagara Falls, CN Tower, Hotel de Glace, Moraine Lake

Helpful Facts for E-Commerce in Canada

  • 37% of Canadian online shoppers are Baby Boomers (between the ages of 53 and 72)
  • 25% are members of Generation X (between 38 and 52)
  • 28% are millennials (between 24 and 37)
  • Online shoppers are 49% male and 51% are female
  • Online shopper breakdown by location: 41% urban, 38% suburban, and 21% rural
  • Out of all the spending that goes to non-Canadian websites, 1/3 is spent in the U.S.
  • In 2021, there were over 27 million e-commerce users, 72.5% of the total population
  • Popular payment methods: Interac Online, MasterPass, and PayPal

Market Potential

Canada is one of the fastest-growing countries in the world, featuring a diverse population of age, gender, ethnic background, and more. It’s only a matter of time before it becomes one of the top markets to get into.

Graph showing a rise in Canada's E-commerce market

A special aspect of Canada is that 90% of its population lives within 100 miles of the U.S. border. It means that products will come faster to customers, which is always a positive.

There are also fewer retail chains in Canada, meaning less competition and more openness to online stores. The pandemic has really affected how Canadians shop; more people than ever are open to and continue to shop online.

Other Important Market Facts

The top e-commerce sites in Canada are:

  • Amazon Canada
  • Kijiji
  • Walmart Canada
  • eBay Canada
  • Best Buy Canada
  • Canadian Tire
  • Costco Canada
  • Hudson’s Bay
  • Home Depot Canada
  • Newegg Canada

What You Should Do Before Jumping into the Canadian Market

There are a few things you should do before jumping into the Canadian market. Taking these few extra steps before opening your store will help your business significantly.

Learn about Your Customers

We always talk about how essential it is to know your customers, and going into a whole new market is no different. In fact, it’s even more important because you need to learn more about that country’s culture.

It’s important to note that Canadians focus on cost and value above all else. They don’t typically have brand loyalty like in other countries. They want a good quality product at an affordable price.

Though interestingly, Canadians won’t look for discounts as actively as customers in other countries. That means it’s on you to either figure out what a good price means or make sure you have discounts displayed properly so that people won’t have to look for them.

Other important factors of online shopping for Canadian customers are easy shopping, good customer service, and an easy return policy. They also like to shop from Canadian stores but aren’t against shopping internationally, especially if it’s the U.S.

Once you have a Canadian customer’s loyalty, you will have a consistent customer base. Most Canadian online shoppers will return to a store that they had a good experience with.

Figure Out Top Selling Products and Popular Niches in Canada

It’s crucial to know what’s popular among Canadians. Knowing what kind of products they like and the most popular niches will make getting into the market so much easier for you.

Popular products include:

  • Clothes
  • Electronics
  • Environmentally friendly/reusable products
  • Beauty products
  • Home and garden
  • Fitness Products

Popular Niches Include:

  • Environmentally conscious
  • Pets
  • Video games
  • Travel
  • Fitness

Important Information for Running Ads in Canada

While social media is an important part of advertising in most countries, it’s especially important in Canada. Specifically how brands interact with people on social media.

You should use a mix of targeted and organic strategies. It will increase your customer base, make people more aware of your brand, and ensure customer happiness. You need to make sure you’re consistent with posts and respond to people in a timely manner.

46% of shoppers look at a retailer’s website after seeing an ad or interaction on a social media platform.

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CTAs for Major Holidays

Victoria Day

Celebrate Victoria Day and the start of the summer with our new collection!

Canada Day

Show off your Canadian pride with our Canada-themed collection!

Christmas

Only # days until Christmas! Do you have all your gifts ready?

Boxing Day

Big sales are happening on Boxing Day! Check out what you could save!

Staying Current with the Canadian Market and Trends

If you want to stay current with what’s happening in Canada, you should check social media, The Globe and Mail, and The Toronto Star.