E-Commerce & Online Auctions in Canada - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)

The E-Commerce and Online Auctions industry in Canada comprises retailers that primarily sell their products online. Accelerated by the rising number of internet and mobile connections, industry revenue is expected to post strong gains, increasing at an expected CAGR of 9.9% to $82.1 billion over the past five years, including an expected increase of 6.7% in 2024 alone. The exceptional rate of growth in this industry is aided in part by increasing internet traffic volume like the number of fixed broadband and mobile connections. Additionally, COVID-19 created a unique opportunity for the industry to benefit from consumers not being able to visit certain stores. Consequently, revenue skyrocketed in 2020 as consumers were forced to shop for certain goods online. Despite strong revenue growth, the average industry profit margin has only increased slightly as a result of new entrants and increased price-based competition.

Trends and Insights

• The popularity of online shopping experienced a surge over the past five years.
• This trend significantly benefited operators in the industry as demand from consumers increased. Consumers have become more comfortable purchasing products online.
• Historically, consumers have preferred to make large purchases in person, but increased confidence in online retailers has caused demand for all product segments to increase. Highly populated areas are attractive to operators because of their access to large labour supplies, trade and technology hubs.
• But since operators can serve customers without being in the same area, population is less important to this industry than the retail sector as a whole. Operators in the E-Commerce and Online Auctions in Canada industry compete on price and product selection.
• Because buyers are easily able to compare products online, operators must either offer competitive pricing or unique products to remain competitive.

Industry Overview

Industry revenue has grown at a CAGR of 9.9 % over the past five years, to reach an estimated $28.1bn in 2024.

Trends and Insights

The rising popularity of online shopping has been crucial for growth Over the past five years, the popularity of online shopping has surged in Canada, significantly impacting the e-commerce industry. Consumer behaviors have evolved with the rise of digital technology, and online shopping has become a part of everyday life.

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

• Consumer preferences will continue to shift towards e-commerce
• Consumers will continue the trend of increasingly turning away from department stores and brick-and-mortar stores in favour of cheaper and more diverse online offerings.