Revenue from online retail in Canada is expected to reach over $74 billion in 2025, up from $65.5 billion in 2024. More than 75% of Canadians prefer online shopping to in-store shopping. This change in consumer habits has led retailers to reassess logistics, customer engagement, and digital infrastructure.
Mobile commerce is now responsible for 40% of all online purchases in Canada. The use of phones and tablets to research, compare, and purchase products. Sean Erez, CEO of Shop Under and founder of Zee Apparel, believes that retailers need to optimize for this format.
“A mobile-first strategy is a must,” says Erez. “Retailers must ensure their websites are responsive to meet consumer expectations, regardless of the device they are being accessed on. A slow loading time or checkout on mobile can ruin the chances of getting a sale.”
User expectations go beyond the front-end experience. Flexible payments are also a major must-have. While credit cards are still dominant, digital wallets and Buy Now, Pay Later options are gaining traction. By the end of the year, digital wallets are expected to make up 27% of all online transactions in Canada. Many customers feel more secure and in control of their purchase experience when they have different payment method options.
“Providing multiple payment methods, such as digital wallets and BNPL, appeals to a wider range of customers and improves the shopping experience overall. It also makes room for younger demographics, who may not have traditional credit lines but are super active in e-commerce.”
Social media is helping retailers forge closer ties with consumers. More than half of Canadian e-commerce merchants currently sell through Instagram and Meta. These platforms allow brands to engage directly with customers and tell their stories. Brands use these tools to reach people who don’t respond to advertising or search.
Canadian shoppers want convenience, transparency, and immediacy. People expect real-time customer service, hassle-free returns, and precise tracking. Brands that fail to meet those expectations risk losing customers’ trust.
Data, security, and privacy are other considerations. Retailers should invest in technologies that protect customer information as regulations evolve. Neglecting to do so can result in reputational harm and financial penalties. Businesses rely more on third-party solutions and internal audits to ensure compliance and instill consumer confidence.
The operational side of e-commerce is also changing. Fulfillment strategies are evolving to keep up with demand for speedy delivery. Examples include warehouse and inventory forecasting tools, urban distribution centers, and last-mile delivery partnerships. These changes are due to customer demand for faster shipping times and improved communication.
Returns management remains a big pain point. Canadian shoppers tend to shy away from buying online when return policies are uncertain. Retailers that offer convenient return options and clearer processes are more likely to keep customers. This sector is getting more focus from technology providers and logistics businesses that want a seamless process.
According to Sean Erez, success in e-commerce is all about getting the basics right while focusing on the complete customer journey.
“The customer journey should not stop at checkout. Brands should be focusing on the delivery experience, follow-up communication, the returns process, and how consumers perceive them after the transaction is completed. Every touchpoint matters,” Erez concludes.
Canadian retailers are facing a rapidly changing environment driven by technology, rising expectations, and changing social norms. The next stage of growth will be shaped by how organizations respond to these pressures through thoughtful, strategic action.
