E‑Commerce Growth in Canada: Digital Marketing Insights for Retailers

As a retailer in Canada, you’ve probably noticed something: more and more of your customers are shopping online. Canada’s e‑commerce market is not just growing, it’s transforming the way businesses and consumers interact. 

As online retail sales are projected to reach US$86 billion by 2030 with a steady CAGR of 4.9% from US$68 billion in 2025, Canadian retailers face both opportunities and challenges in adapting to this digital-first environment.

In this blog post, I will shed light on what’s fueling this E‑Commerce Growth in Canada, how digital marketing plays a central role, and what practical steps Canadian retailers can take to thrive.

• Market Expansion: Canada’s e‑commerce sector has seen double‑digit growth over the past decade, accelerated by the pandemic and sustained by changing consumer habits.
• Top Categories: Fashion, electronics, and groceries dominate online sales, but niche categories like eco‑friendly products and local artisanal goods are gaining traction.
• Consumer Behavior: Canadians are increasingly comfortable with online shopping, with mobile devices accounting for more than half of e‑commerce traffic. Convenience, competitive pricing, and fast delivery are key drivers.

This shift means that digital marketing is no longer optional; it’s the backbone of how retailers attract, convert, and retain customers.

Shoppers in Canada are becoming more digitally convenient. They are ordering groceries via smartphones and purchasing winter jackets via social media platforms like Instagram. Most online traffic now comes from mobile devices. So your online shop and checkout system must be lightning-fast and mobile-optimized to attract more customers.

Providing convenience to the Canadian audience that they want is the only way to stand out in the highly competitive market. Implementing effective digital marketing techniques can go a long way to make you an ideal, reliable, and competent retailer in Canada.

1. Local SEO & Hyper‑Personalization

Canadian consumers seek solutions locally before making a purchase. Retailers that optimize under the “near me” search, have bilingual content (English and French) and optimize promotions by region, stand out. Personalization, be it AI-based product suggestions or targeted email addresses, leads to trust and increased conversions.

2. Social Commerce & Influencer Marketing

Social platforms are transforming into shopping platforms. Canadian users are fond of Instagram Shops, TikTok shopfronts, and Facebook Marketplace. Collaboration with micro-influencers, who appeal to local communities, will facilitate real engagement. As an example, a fashion retailer based in Toronto could partner with lifestyle influencers to demonstrate the collections of a season.

3. Mobile‑First Strategies

With mobile penetration exceeding 90%, retailers must prioritize mobile‑optimized websites, apps, and checkout experiences. SMS campaigns and push notifications are effective tools for flash sales, loyalty rewards, and personalized offers.

4. Data‑Driven Decision Making

Analytics tools allow retailers to track customer journeys, identify bottlenecks, and predict demand. AI‑powered insights can help forecast seasonal trends, reduce cart abandonment, and personalize marketing campaigns at scale.

Canadian consumers are also highly sensitive to privacy and data protection issues. Retailers should adhere to PIPEDA (Personal Information Protection and Electronic Documents Act) and share information about the use of customer data with them.

Clear policies, secure payment gateways, and a trust badge displayed reassure customers and encourage them to buy again. Telling them about the way you will be using their data and information is the best way to be transparent and win trust.

• Sustainability: Eco‑friendly packaging, carbon‑neutral shipping, and ethical sourcing resonate strongly with Canadian shoppers. Highlighting sustainability in marketing campaigns can differentiate brands.
• Omnichannel Integration: Blending online and offline experiences — such as click‑and‑collect services or in‑store digital kiosks — creates seamless customer journeys.
• AI & Automation: Chatbots, automated email flows, and predictive product recommendations are becoming standard tools for enhancing customer service and efficiency.
• Cross‑Border Shopping: With strong trade ties to the U.S., Canadian retailers can expand reach by targeting international buyers while emphasizing local identity.

1. Invest in Local SEO — Optimize for bilingual searches and regional keywords. Keeping Google Business Profile updated is also a great idea to appear in more “near me” searches.
2. Use Social Commerce — Build authentic partnerships with Canadian influencers. Instead of running expensive ads, focus on storytelling and user-generated content to build trust.
3. Prioritize Mobile Experiences — Ensure fast, seamless mobile checkouts. Along with responsive websites and stores, consider mobile apps and SMS campaigns to promote flash sales and special offers.
4. Use Data Wisely — Track customer behavior and personalize campaigns. Use AI tools to recommend products, predict seasonal demand, and even automate email flows.
5. Stay Transparent — Build trust through compliance and clear communication. Opt for visible privacy policies, secure payment gateways, and transparent return policies.
6. Embrace Sustainability — Showcase eco‑friendly initiatives in marketing. Consider eco-friendly initiatives such as recyclable packaging, carbon-neutral shipping, or partnerships with local green organizations.

Canadian e-commerce is transforming the retail business, and digital marketing is the solution since it is the only way to remain competitive. Canadian retailers will be able to ensure their long-term relationships with customers and not only keep up with the market but also be successful by concentrating on the aspects of local relevance, personalization, compliance, and innovation. The future of brands will be agile, data-driven, and customer-centric.