How is the size of Canada’s e-commerce market? Analysis of the current situation of Canada’s cross-border e-commerce market

Canada's e-commerce market size analysis, including cross-border market situation

As one of the major e-commerce markets in North America, Canada is favored by many sellers in addition to the United States. So what is the scale and trend of cross-border e-commerce market in Canada? Today, we will take you to learn more about it.

Overview of Canadian Economy

Canada is the second largest economy in North America with a total GDP of $1.99 trillion in 2021, ranking ninth in the world. Its annual economic growth rate is 4.6%, and its GDP has reached a new historical high. The per capita GDP is $52,100, ranking fifteenth in the world, with an annual growth rate of 16%.

Since 2021, various restrictive measures related to epidemic prevention and control in Canada, as well as the gradual resumption of travel and social activities, have promoted the rebound of economic activity. The suppressed consumer demand due to epidemic control and other factors has been fully released, and it has also driven the continuous rise of inflation. With the issuance of more economic stimulus measures, Canada’s overall economy will further recover.

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Internet Penetration Rate as High as 94%

In 2021, Canada’s total population reached 38.25 million. Although its population is not high in the world rankings, its per capita GDP is extremely high and its consumer purchasing power is considerable. At the same time, Canada’s internet penetration rate is 94%. Therefore, there are 35.95 million internet users, which provides a good foundation for the further development of cross-border e-commerce.

Data released by Digital shows that the average Canadian spends 1 hour and 46 minutes on social media, with Facebook being the most popular platform. Seventy percent of Canadians list Facebook as their most frequently used application, followed closely by Facebook Messenger. In addition, YouTube and WhatsApp are also popular among Canadians.

E-commerce market size

In 2021, Canada’s total e-commerce sales reached $44.12 billion, ranking ninth globally. According to a survey by UPS, nearly 90% of Canadian consumers purchase international retail products and have a high acceptance of cross-border shopping. At the same time, Chinese products are also popular among Canadian consumers.

Regarding e-commerce platforms, Shopify is the preferred independent platform for many Chinese sellers to enter the North American market, and the Canadian market is also a profitable market for many Amazon sellers outside of the US and Germany.

In terms of consumer preferences, according to industry research, fashion products are a popular online shopping category in Canada, followed by electronics and media categories. In 2021, their market sales were $7.07 billion and $6.36 billion, respectively. It is expected that the market sales of fashion products will reach $10.14 billion and the sales of electronics and media categories will reach $7.61 billion in 2022.

It can be seen that the Canadian e-commerce market is still substantial, and interested friends can conduct market research and choose the appropriate platform and timing to enter.

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