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An overview of the eCommerce industry in Canada

eCommerce is buying or selling goods or services over the Internet. It is a digital business model that provides consumers with an alternative to shopping in physical stores. In this ecommerce boom, Canada has not been left behind as many eCommerce companies in the B2C, B2B and D2C businesses have risen!

Canadian online retailers can reach more customers and sell their products at lower prices than traditional brick-and-mortar stores. They can also provide faster delivery times and customer service. eCommerce has grown in popularity and become a vital part of the global economy, with online sales increasing by more than 10% yearly.

The e-commerce industry in Canada is made up of a diverse range of businesses and products. Fashion, electronics, and miscellaneous commerce are the most popular industries.

As more people buy online and consumers shop globally, there is a growing demand for Canadian businesses to establish an international presence.  Let's take a look at Canada's top eCommerce companies.

Top 15 Best eCommerce Companies in Canada [2022 Updated List]

Canada has one of the greatest groups of people who make purchases online. Here are the top fastest-growing ecommerce companies in Canada.

1. Amazon 

Amazon is one of Canada's most sought-after e-commerce companies , claiming a large portion of the eCommerce retail market share. It is so popular that eight out of ten Canadians have shopped something on Amazon in 2022. Electronics, fashion, home and garden, toys, sports equipment, and other categories are all available on Amazon Canada.

Amazon Canada also sells AmazonBasics, an affordable line of products for home necessities ranging from towels to kitchenware. A broad selection of products, low price, and modest delivery cost make Amazon the most prominent among all Canadian e-commerce companies. 

2. Kijiji 

Kijiji is a classified ad website that serves the Canadian market. The most popular feature of Kijiji is its advanced search engine with multiple categories. This allows users to filter listings by keyword or location and include product photographs for sale from sellers who have uploaded them onto their profiles. 

Kijiji allows people to buy and sell items and acts as a social platform enabling users to find new friends or partners. It provides an easy-to-use interface designed to suit every Canadian's needs. If you're looking for something specific or just want to browse, Kijiji has you covered. It is the eighth most valuable e-commerce website in the world.

3. Walmart 

Walmart is a multibillion-dollar retail giant that sells a wide range of goods. They operate in various nations and are one of the world's largest employers. The Walmart Canada website has a large selection of gadgets, apparel, and household goods.

Walmart Canada also has a Great Value store chain that sells groceries and fresh fruit. It is a well-known brick-and-mortar corporation and one of the top ecommerce companies in Canada. Walmart Canada has nearly 400 locations around the country, both online and in retail stores.

4. eBa y 

eBay Canada is the most popular online marketplace for Canadians. It has a wide range of products and services, from cars to electronics and collectibles to antiques. It also has an app that gives users access to their listings on their mobile devices.

eBay has several features to help users find the best deals on the site. eBay is a haven for collectors and well-known for auction bidding. eBay Canada is now active in markets worldwide with millions of active buyers.

5. Best Buy 

Best Buy is a large multinational e-commerce company founded in the United States that serves all electronic consumer needs worldwide. But in Canada, it is the ultimate eCommerce company for consumer electronics.  

With many clients flocking to it to purchase electronics online, this eCommerce Canada website has witnessed incredible growth.

The company is a Best Buy Co. Inc. subsidiary, with more than 160 locations in Canada. The eCommerce company is noted for its corporate social responsibility, sustainable drives, outstanding discounts, and high-quality products.

6. Canadian Tire

Canadian Tire is a retail company that sells a diverse range of products, from tires and bicycles to sporting equipment and apparel. It provides Canadian customers with an outlet for sports gear, automotive parts, home decor, and eco-friendly household items.

The store has over 1700 retail stores spread throughout the Canadian coast. The company has three additional sports, work apparel, and accessories brands: Marks, FGL Sports, and PartSource. Canadian Tire is one of those eCommerce companies in Canada offering a lucrative rewards program for customers and employees.

7. Costco 

Costco Canada is a subsidiary of the American retailer Costco. It is a chain of warehouse stores or warehouse clubs that sell a wide selection of goods at low prices. It is one of the foremost e-commerce companies in Canada. Costco is environmentally conscious and recognized for its corporate social responsibility efforts.

The company has grown to offer various products, including groceries and fresh produce, clothing, electronics, etc. This American organization has established a massive foothold in bricks and mortar companies around the globe. The eCommerce company currently serves over 10 million Canadians with its exemplary services.

8. Hudson’s Bay 

Hudson's Bay Company is one of the oldest retail companies in Canada, with humble beginnings in fur trading. Today, the company is called The Bay, an enormous e-commerce marketplace and chain of retail stores. The company is widely famous for its fur and fur-related products.

The company has grown immensely in men's and women's apparel, shoes, and handbags. They offer an attractive free shipping policy on all orders above $99. Hudson's Bay has iconic subsidiaries like Saks, an online store for luxury fashion, and Saks OFF 5th for off-price luxury online products.

9. Home Depot  

Home Depot Canada is an acclaimed home improvement retailer and e-commerce website with over 1,000 stores nationwide. They offer an assortment of products and services that cater to customers’ home makeover and DIY needs. It is one of the biggest Canadian e-commerce companies and retail chain stores constantly expanding its business.

They have also been recognized for their outstanding customer service and competitive price for product varieties. Home Depot is one of the most successful  Canadian ecommerce companies that has mastered omnichannel fulfillment, pairing online shopping with in-store parcel pick-up. 

10. Newegg 

Newegg Canada is a subsidiary of Newegg Commerce Inc. that trades in electronics and computer hardware.  It has grown from a small startup to one of Canada's largest consumer and industrial electronics e-commerce websites. It is a one-stop station for all Canadians looking to fulfill their technological needs. Newegg has a global reach of more than 80 countries, including Latin America, Asia, and Europe. 

11. Etsy 

Though Etsy is an American eCommerce company, it has a leading position in the list of e-commerce companies in Canada that garners a significant consumer base. The best way to describe Etsy is to regard it as a marketplace for handmade products, vintage items, and crafts.

The best feature of Etsy Canada is a safe and trustworthy space for women entrepreneurs to showcase their craft skills and sell their products at their rates. Over the pandemic, Etsy Canada has grown to a $10 billion venture with over 200,200 dedicated shoppers.

Etsy’s interface allows designers and creators to list their crafts, designs, handmade jewelry, bags, etc., and grow small businesses from home. Etsy is well-known for offering the stability of supplemental income to small business owners.

12. Shopify Canada

Shopify is a globally renowned eCommerce platform that allows merchants to host their online stores and sell their products to customers worldwide. The primary features of Shopify are offering marketing, technical support, payment options, shipping, and customer solutions to website owners. 

Shopify has over 1.5 million e-commerce websites in 175 countries. Shopify has over 190,000 dedicated customers in Canada and leading brands like Pepsi and Nestle. Shopify stores bring diverse products like household supplies, books, Vinyl LPs, and dinnerware to shampoo. 

13. Well Canada

Well Canada is one of the best e-commerce websites in Canada for dietary and health supplements. Over the year, it has evolved into a wellness platform catering to baby care products, beauty and skin care, healthy assortment of foods and medicines. Well Canada has special considerations for green and sustainable brands for snacks, personal care and lifestyle products.

It has received accolades from Canada Post for e-commerce innovation and is even named as one of the best mid-sized e-commerce retailer in Canada. Well Canada scores high in customer satisfaction index and and sustainable product sourcing from over 40,000 green brands. 

14. Petsmart 

Petsmart LLC is an American superstore chain for small pets care and grooming services. Petsmart has over 1600 retail locations across the United States, Canada and Puerto Rico. 

Additionally, it has 200 in-store pet hotels, boading facilities, grooming salons, training day camps and veterinary care. Petsmart is the go-to website for treats and pet accessories.

It ranks high among Canadian e-Commerce companies offering lifetime pet care. Petsmart Canada is well known for pet toys, DIY products and hobbies. It works with some 4000 animal welfare organizations to save adoptable pets. One of the highlights of Petsmart is its online adoption facility where it matches potential pet owners with their preferred species of cats and dogs. 

15. Powell’s

Powell’s Books is an independent bookseller chain stores operator for used and new books. Powell’s internet presence began around 1993 and it officially created its e-commerce website in 1994, before Amazon. Powell’s headquarters in Portland is iconically dubbed as Powell’s City of Books, for encompassing a complete city block. 

Powell’s has guarded the book reding culture for both the U.S. and Canadian readers for fifty years. It has over four million books in its inventory combining both in-store and ecommerce website. These include used, new and out o print books, e-books and books in audio format.

Criteria for choosing the best eCommerce company in Canada

There are a lot of factors to consider when choosing to shop from Canadian e-commerce companies. You should opt for a company with a good reputation and is considered reliable.

There are many factors to be aware of, such as customer service, pricing, and trustworthiness. The following are some of the most important criteria for choosing the best ecommerce company in Canada.

1. Service quality and product selection:

• Examine their products and services as the first step. You should check to see if the company offers a diverse choice of solutions and prices. 
• An ideal eCommerce company should offer complete customer service.

2. Customer service and experience

• Analyzing previous customers' experiences might help you comprehend the company's services and goodwill. 
• Customer reviews might assist you in figuring out if the company has satisfied its prior consumers. It also gives a good idea of customer service capabilities to handle unforeseen incidents during shopping and checkout. 

3. The website design, branding, and content marketing strategy:  

• One of the most important criteria is the company's website and interactive interface.
• The best web store has an easy-to-navigate website and simple and attractive branding and marketing strategies.

4. Shipping policies:  

• Finding an ecommerce website with a fast and customer-friendly shipping policy is crucial. Websites that have laid down their shipping rules transparently are reliable and secure.
• Understanding the shipping charges you might have to pay before choosing an e-commerce company for your online shopping.

5. Return policies:  

• One of the issues most consumers in online shopping face is returning products. While return policies differ for every company, a good refund policy allows a specific return window and informs of any shipping charges levied.
• Not knowing about the return policies in advance can cause unnecessary hassle. The top e-commerce companies in Canada state their return policies on their website and always abide by them.

6. Online tracking and delivery time:  

• The delivery patterns and policies might differ from one company to another. If you wish to find a reliable ecommerce website in Canada, you must look for one that ensures speedy deliveries and online tracking. 
• Online tracking can help you define the estimated arrival time for your orders. You can also look for online chat or call support on eCommerce websites that you can use in case of delayed deliveries.

How do Canadian eCommerce websites benefit from shipping companies?

The top e-commerce companies in Canada rely on at least one leading shipping company to accomplish an incredible delivery experience and fulfill customer expectations.

E-commerce shipping normally involves a host of processes. It starts with picking and packing items in a warehouse, generating shipping labels, transporting products to customer destinations, and managing product returns. 

Shipping companies manage the complexities of Ecommerce shipping, and in many cases, eCommerce companies in Canada rely on multi-carrier shipping. Each shipping company has rates, surcharges, delivery methods, international shipping assistance, and order fulfillment services. Here are some of the major benefits of partnering with shipping companies:

1. Rate Affordability

Collaborating with shipping companies can get you discounted and negotiated rates with different delivery methods for low-cost shipping. Some shipping carriers like FedEx and UPS are notable for next-day and same-day deliveries and small business support programs. 

Others like DHL offer international shipping services around the globe, and USPS  is known for its affordable shipping rate. You can get live carrier rates via shipping plugins and software to gain an economical shipping rate for each shipment.

2. Last-Mile Delivery Optimization

Canadian customers expect fast, secure, and reliable delivery from all e-commerce websites. This is where shipping companies can help you deliver a high-quality product delivery experience. 

You can avail of free shipping, expedited shipping, and 2-day deliveries that are the hallmarks of prominent Canadian ecommerce companies like Amazon.

Most shipping companies combine a range of delivery services like curb-side deliveries, door-to-door, and parcel-locker deliveries. Giving your customers a range of delivery options will heighten your brand value and satisfaction.

3. Optimal Packaging

Packaging is a significant source of concern for many brands. Consumers expect robust packing that securely holds their product and even branded packaging for the ultimate unboxing experience. 

Shipping companies like FedEx, UPS, and Purolator offer a motley of packaging options suited for every shape and size of products. 

You get packaging for bulk and heavy shipments, small parcels, envelopes for documents, and more. Moreover, carriers offer eco-friendly packaging, especially for climate-conscious Canadian consumers. 

4. Order Tracking

One of the essentials of a positive post-purchase customer experience is order tracking. Shipping companies monitor, track, and record the life-cycle of each product they ship. This ensures you and your customers are in the loop of the entire shipping journey. 

Updating delivery status informs customers about their products and keeps them in the hype of receiving them. You can get the tracking number from your shipping carrier and forward it to customers. 

Or build a dazzling order tracking portal to keep all information on a single portal. Here, shipping solutions can play a big role in streamlining your customer notifications and building a tracking page.

5. Returns

Shipping companies are the go-between for Canadian ecommerce brands and customers for product returns. It is easy to allocate carriers to either pick up return orders from customers' doorsteps or bring the parcels back to their warehouse directly. E-commerce owners can generate return labels so customers can directly send the item via shipping carriers. 

Shipping companies also offer discounts for returns and, in many cases, ensures quality check before shipping the packages back. 

They keep track of the complete reverse logistics process, and customers are informed of specific milestones to help them track their refunds. 

Conclusion

eCommerce has been booming, with new stores opening up every day worldwide. Above is the list of the top Canadian eCommerce companies that can offer you remarkable service. The variety of products in such stores can cater to every human need. We hope this article helps you decide on your go-to store for a wonderful shopping experience.

(Frequently Asked Questions and Answers)

1. Which eCommerce platform is the best in Canada?

Canada has multiple eCommerce platforms and marketplaces well suited for a diverse range of products and services. For small business ventures, Shopify, Etsy and eBay Canada are good choices. For apparel and luxury fashion Hudson's Bay leads the chart. Similarly, for electronics there is Newegg and Best Buy offer great deals.

2. Which is Canada's biggest online retailer?

Amazon Canada leads the list of Canada's biggest online retailers with 180 million Canadian shoppers visiting it monthly. Amazon surpasses Walmart in Canada with its array of home improvement products, electronics and accessories, apparel, books, office supplies, pet items are many more categories.