By eliminating wait times, showcasing all in-stock inventory, and delivering products in a speedy fashion, online shopping has made purchasing goods and services easier than ever before. As more retailers adapt their business features to the new digital model, consumers have endless options to choose just at the click of a button. Online shopping has drastically increased during the COVID-19 pandemic, doubling since 2019.
The emergence of subscription services has also incentivized consumers to continue online shopping rather than opting in for traditional in-store services. Through monthly installments, loyal consumers receive discounts, reduced shipping time, and other membership perks. Online shopping is expected to rise in the next few years as well.
To learn more about Canada’s online shopping habits, check out our statistics below.
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Fascinating Canadian Online Shopping Statistics
- In 2020, 82% of Canadians shopped online
- Canadians spent about $84.4 billion shopping online in 2020
- About 45% of Canadian online shoppers live in urban areas
- Almost 40% of Canadian online shoppers are couples without children
- e-Commerce sales doubled from 2019 to 2020
- Non-essential online purchases increased during the COVID-19 pandemic
- In 2020, average annual spending on physical goods was $2,336
- 94% of Canadians have household Internet service
Over 80% of Canadians shopped online during 2020.
(Statistics Canada)
As of 2020, eighty-two percent of Canadians shopped online in 2020, showing an increase from 73% in 2018. Ninety-five percent of Canadians aged 25 to 44 years old shopped online compared to 90% of those aged 15 to 24 years old. The demographics with the lowest online shopping habits were Canadian seniors, 65 and over. Older generations show a greater distrust of online transactions, also indicated in the relatively lower usage of e-Wallets amongst the demographic.
Most popular online purchases included computers, electronics, and women’s apparel.
(Canada Post)
Canada Post analyzed the top overall categories of online purchases in Canada, based on the percentage of online shoppers that buy each product category. Computers and electronics come in at 42%, followed by women’s apparel at 41%, books at 37%, and men’s apparel at 31%. On average, Canadians buy from 4.8 categories when shopping online.
A PayPal survey also showed, that compared to April 2020, home office furnishings, fitness equipment, and school supply purchases increased. The survey also showed online grocery orders increased and that women were more likely than men to order their groceries online.
The pandemic has greatly increased e-Commerce sales for building material and garden equipment supplies as well, with a growth of 140% as well as furniture and home furnishings, with a growth of 98%.
In 2020, 16% of Canadians had an online subscription for physical goods.
(Statistics Canada)
Sixteen percent of Canadians reportedly have an online subscription, with 7% ordering meal kits, 5% ordering groceries, and 9% ordering other physical goods. Since the start of the COVID-19 pandemic, 22% of companies report increases in their subscription acquisition rates.
Meal kit and grocery subscription boxes allow consumers to eliminate grocery visits altogether while also providing step-by-step directions and ideas what to make for the week. Other subscription boxes, such as Fabletics Canada and Shave Club Canada, are more catered to specific interests, providing consumers with new surprise items each month.
Couples without children make up almost 40% of Canadian online shoppers.
(Canada Post)
Within Canada’s online shopping population, 38% are couples without children, 22% are couples with children, and 19% are adults living alone. Fifty-two percent of shoppers are women and the average annual household income for Canada’s online shoppers is $92,656. Forty-five percent of online shoppers live in urban areas and 36% reside in suburban neighbourhoods.
Over half of Canada’s online shoppers qualify as occasional (2-6 annual purchases) and frequent (7-12 purchases) shoppers. However, in 2019, the number of Hyper Elite shoppers – those that make over 41 or more purchases online annually – had doubled since 2018. In 2018, the average online purchases made nationwide annually was slightly above 17, with the average Hyper Plus (combined Hyper and Hyper Elite category) consumer making over 57 purchases annually.
The most popular e-Commerce marketplace is Amazon Canada.
(eCommerce Guide)
Amazon Canada is the largest e-Commerce marketplace in Canada, with over 30,000 Canada-based third party sellers. In 2019, Canadian business grossed over $1 billion on the website, showcasing a 40% increase in sales from the previous year. Amazon Canada is estimated to have over 160 million monthly visitors. A variety of small and medium size businesses are able to sell their products through the website, with 45% selling their products outside of Canada.
Other popular e-Commerce websites in Canada include Kijiji, with an estimated 55.81 million monthly visitors, and Walmart Canada, with an estimated 33 million monthly visitors.
Younger shoppers are more likely to rely on consumer reviews when choosing an item to purchase.
(NPD Group)
Consumer reviews are helpful in deciding what product to buy, through the various rating systems and attached commentary, oftentimes with real-life photographs. NPD Group reports younger shoppers are more dependent on reviews, than other demographics, when deciding upon a specific item.
Outside influence is not limited to consumer reviews, as Gen Z and millennial consumers also receive targeted ads, many of which also feature popular content creators and influencers. Younger consumers are also more likely to turn to video content to better understand how a product works and whether it’s worth the purchase.
More companies are turning to social media to market and sell their products to target more tailored demographics. Amidst the 55% of e-merchant sellers, 95% choose Facebook and 69% use Instagram to sell their products.
Online shopping orders tend to increase around major holiday periods.
(International Trade Administration)
It’s no surprise that as gift-giving increases around the holidays, so do the online orders. In 2021, Canadian consumers reportedly planned to spend about 37% of their shopping budget online, an increase since 2019.
Major holidays for online shopping in Canada include: Valentine’s Day, Easter, Mother’s Day, Father’s Day, back-to-school season, Halloween, Christmas, and Boxing Day. Online shopping sales drastically increase in the fourth quarter, from Black Friday until Christmas, thanks to deals through Cyber Monday and Black Friday.
Certain chains are restructuring their business model to cater more towards e-Commerce.
(The Globe and Mail)
When choosing a retailer, consumers tend to pay attention to free shipping offers, detailed delivery expectations, flexible return policies, and membership deals. As online shopping continues to become more popular, corporations and small business alike are integrating more e-Commerce friendly spaces in their physical locations.
Walmart Canada announced that more than 25% of its locations will be remodeled to serve more e-Commerce needs while Best Buy announced their stores will also be renovated to fit new consumer needs.
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COVID-19’s lockdown measures showcased the power of online shopping, as more consumers pivoted from traditional shopping methods to buy essentials from the comfort of their home. About 9% of Canadians bought physical goods for the first time in 2020. The convenience of online shopping allows you to find the best product at the best price at any time. Though some individuals may be prepared to go back to in-store shopping as lockdown measures become more open, online shopping is still expected to increase in the next few years.
Sources
- https://www.cbc.ca/news/business/online-shopping-covid-19-1.5661818
- https://www.saanichnews.com/news/value-of-goods-and-services-purchased-online-by-canadians-rose-almost-50-per-cent-in-2020/
- https://www150.statcan.gc.ca/n1/daily-quotidien/210531/dq210531d-eng.htm
- https://www150.statcan.gc.ca/n1/pub/11-627-m/11-627-m2021048-eng.htmhttps://www.statista.com/topics/2728/e-commerce-in-canada/#topicHeader__wrapper
- https://retail-insider.com/retail-insider/2021/07/canadians-to-continue-shopping-online-post-pandemic-amid-ecomm-growth-survey/
- https://www150.statcan.gc.ca/n1/en/pub/11-627-m/11-627-m2020088-eng.pdf?st=l1eaofiy
- https://www.canadapost-postescanada.ca/blogs/business/ecommerce/the-growing-canadian-subscription-box-market/
- https://smallbusinessbc.ca/wp-content/uploads/2019/04/2019_ecomm_benchmark_report-en-Canada-Post.pdf
- https://press.aboutamazon.com/static-files/9b3cac17-bd2a-4387-8129-b9930fcff077
- https://ecommerceguide.com/top/top-10-canadian-ecommerce-sites/
- https://www.npd.com/news/press-releases/2021/online-shopping-frequency-plateaued-in-2021-for-most-categories-after-a-significant-increase-in-2020/
- https://www.trade.gov/country-commercial-guides/canada-ecommerce
- https://www.theglobeandmail.com/business/industry-news/property-report/article-innovation-driving-transformation-of-retail/
- https://www150.statcan.gc.ca/n1/pub/11-627-m/11-627-m2021048-eng.htm
