E-Commerce Growth in Canada: How International Sellers Can Tap In?

Canada’s e-commerce market is booming. With a market size of approximately USD $41.8 billion in 2025 and projected growth to over $71 billion by 2031, Canada represents one of the most attractive and accessible online retail markets in the world. Over 27 million Canadians — more than 72% of the population — are active online shoppers, and that number continues to grow year over year.

For international sellers, this is a major opportunity. Canada’s high internet penetration, strong consumer purchasing power, established digital payment infrastructure, and cultural affinity with the United States make it one of the easiest international markets to enter. Better yet, platforms like Amazon, Shopify, and Walmart Canada have built infrastructure specifically designed to help foreign sellers reach Canadian buyers.

In this guide, you will learn how to tap into Canada’s e-commerce growth — from choosing the right platform to understanding tax obligations, shipping logistics, and whether you need a Canadian company to sell online.

Canada’s E-Commerce Landscape

Canada’s e-commerce market has been on a strong growth trajectory. E-commerce now accounts for an estimated 13% or more of all Canadian retail sales, up from less than 7% in 2019. The pandemic accelerated online adoption across all demographics, and those habits have proven sticky — Canadians continue to shop online at higher rates than pre-pandemic levels.

Key market characteristics include:

• Average online purchases per person:6 transactions per year

• Most popular product categories: Fashion and apparel, electronics and media, beauty and personal care, food and beverages

• Preferred payment methods: Credit and debit cards remain dominant, but digital wallets (Apple Pay, Google Pay, PayPal) are rapidly gaining share and were projected to account for 27% of all online payments by 2025

• Mobile commerce: Approximately 34% of Canadian retail e-commerce transactions occur on mobile devices

• Social commerce: 55% of Canadian e-merchants sell through social media channels

Canada’s bilingual market (English and French) is also worth noting. Sellers targeting Quebec — Canada’s second-largest province by population — should consider offering product listings and customer service in French to maximize conversions.

Top E-Commerce Platforms in Canada

Amazon Canada

Amazon.ca is the dominant online marketplace in Canada, offering international sellers access to millions of active Canadian buyers. Through the Amazon Global Selling program, you can list products on Amazon.ca from anywhere in the world. Fulfillment by Amazon (FBA) Canada allows you to store inventory in Canadian fulfillment centres, and Amazon handles picking, packing, shipping, and customer service. To sell on Amazon Canada, you need a Professional Seller account, a valid credit card, a phone number, and your tax identity information. Amazon charges referral fees (typically 8–15% depending on category) plus FBA storage and fulfillment fees.

Shopify

Shopify is a Canadian-founded e-commerce platform headquartered in Ottawa, and it powers millions of stores worldwide. For international sellers, Shopify provides the tools to build a dedicated online store targeting Canadian customers, including multi-currency pricing, Canadian payment gateways (Shopify Payments), and integration with Canadian shipping carriers. Shopify does not require Canadian incorporation — you can run a Shopify store from anywhere. However, having a Canadian entity simplifies tax collection, builds customer trust, and enables you to use Canadian fulfillment partners.

Walmart Canada Marketplace

Walmart Canada’s online marketplace has been growing rapidly, positioning itself as the second major marketplace option after Amazon. To sell on Walmart Canada Marketplace, you need a registered business, a product catalogue that meets Walmart’s quality standards, and the ability to fulfill orders within Canada. Walmart’s marketplace attracts price-conscious shoppers and benefits from the brand’s massive brick-and-mortar presence across Canada. Approval is required before you can begin listing.

eBay Canada

eBay.ca is an established marketplace with a loyal customer base, particularly strong in electronics, collectibles, and refurbished goods. International sellers can list on eBay Canada with minimal barriers, using eBay’s Global Shipping Program to handle cross-border logistics. eBay charges insertion fees and final value fees (typically 10–15% of the sale price).

Etsy

For sellers of handmade, vintage, and unique products, Etsy provides access to Canadian buyers without requiring local incorporation. Etsy handles payment processing in multiple currencies and offers advertising tools to boost visibility. If your products are craft-based, artisanal, or niche, Etsy can be an effective low-cost entry point to the Canadian market.

Do You Need a Canadian Company to Sell Online?

The short answer: not always, but in many cases it is strongly recommended. Here is how to think about it:

• GST/HST Registration Threshold: If your sales to Canadian customers exceed $30,000 over four consecutive calendar quarters, you are required to register for GST/HST and collect tax on your sales — regardless of where your business is located. Non-resident businesses can register for GST/HST without incorporating in Canada, but having a Canadian corporation simplifies the process significantly.

• Marketplace Facilitator Rules: Amazon, Shopify, and other marketplaces may collect and remit GST/HST on your behalf as marketplace facilitators, but your obligations depend on your specific arrangement and the platform’s policies.

• Banking and Payment Processing: Having a Canadian corporation and bank account makes it easier to receive payments, manage Canadian-dollar transactions, and work with local suppliers and fulfillment partners.

• Customer Trust and Credibility: Canadian consumers are more likely to buy from businesses with a Canadian presence, including a .ca domain, a Canadian return address, and pricing in Canadian dollars.

Shipping and Fulfillment for International Sellers

Getting your products into the hands of Canadian customers efficiently is critical to success. Here are your main options:

• Fulfillment by Amazon (FBA) Canada: Ship inventory to Amazon’s Canadian fulfillment centres, and Amazon handles storage, packing, shipping, and customer returns. FBA products qualify for Prime shipping, which significantly increases conversion rates.

• Third-Party Fulfillment Centres (3PL): Companies like ShipBob, Fulfillment by Canada Post, and regional 3PL providers offer warehousing and fulfillment services across Canada. These are ideal if you sell through Shopify, your own website, or multiple marketplaces simultaneously.

• Cross-Border Shipping: You can ship directly from your home country to Canadian customers, but be aware of customs duties, brokerage fees, and longer delivery times. Most Canadian consumers expect delivery within 3–7 business days, and free or low-cost shipping is a major purchase driver.

• Canadian Import Regulations: Certain products (food, health products, electronics, children’s toys) are subject to specific Canadian regulatory requirements. Ensure your products comply with Health Canada, the Canadian Food Inspection Agency (CFIA), and Innovation, Science and Economic Development Canada (ISED) standards before importing.

Tax Obligations for E-Commerce Sellers

As an international seller in Canada, your tax obligations include:

• GST/HST: You must register if your Canadian sales exceed $30,000 over four consecutive calendar quarters. The rate is 5% GST in Alberta, BC, Manitoba, and Saskatchewan; 13% HST in Ontario; and 15% HST in the Atlantic provinces. Quebec has its own system (QST at 9.975% plus GST).

• Provincial Sales Taxes: British Columbia (7% PST), Saskatchewan (6% PST), and Manitoba (7% RST) charge separate provincial sales taxes in addition to the 5% federal GST.

• Income Tax: If you have a permanent establishment in Canada (such as a warehouse, office, or employees), your business income attributable to that establishment is subject to Canadian corporate income tax. Non-resident corporations without a permanent establishment may still have withholding tax obligations on certain types of Canadian-source income.

Getting Started — Your E-Commerce Entry Checklist

1. Research your target market: Identify demand, competition, and pricing for your products in Canada.

2. Choose your platform: Amazon Canada, Shopify, Walmart Marketplace, eBay, Etsy — or a combination.

3. Determine your business structure: Decide whether to sell as a foreign entity or incorporate a Canadian corporation.

4. Register for GST/HST: If required, register with the CRA and set up tax collection.

5. Set up fulfillment: Choose FBA, a 3PL partner, or cross-border shipping.

6. Ensure regulatory compliance: Verify that your products meet Canadian safety, labelling, and import standards.

7. Launch and optimize: List your products, set competitive pricing, invest in advertising, and continuously optimize based on performance data.