Online sales and e-commerce in Canada

If you have a software product, a service that can be delivered from abroad or a physical product that people don’t mind waiting for, you can do business internationally directly from your own country. 

This is also valid for Canada if you keep in mind that you will have to adjust your marketing. You may have to make translations and accept different currencies, and for physical products you have to manage the whole shipping and customs process.
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Where it all starts: select a target group

As counts for any country: you first have to define the target group that you want to sell to. If these are businesses, then you can reach out directly through emails and targeted advertisements, e.g. on LinkedIn. If this arouses interest and gives a sufficient response rate, then you may have found an easy way to get the market’s attention. 

If your target group is more diffuse, or is a consumer group, then you have to rely more on advertising such as on Facebook or Instagram.

Translate your website and check your SEO

Even if your business is really international, it may be wise to set up local website translations and check whether your text aligns with the culture. 

This also counts for Canada where people prefer reading in their own language and also search most of the time in their own language. Therefore you need to include the relevant keywords in your texts, and these may not be a direct translation.

With regards to content, my personal experience is that if you have a successful blog topic in one language, it is likely to do well also in other languages. Don’t reinvent the wheel, just make a proper translation.

Enable local payment

Customers who see prices and can pay in their local currency are three times more likely to deal with you. So it makes sense to offer this option.

Also for Canada offering local payment methods is recommended. Of course there are different options, but the easiest first step is to use credit or debit card payments.

Credit card payments typically work best up to an amount equivalent to 500 USD or EUR. If the invoicing amount is higher, there often is a different internal procedure required.

The e-commerce market in Canada

The Canadian e-commerce market is experiencing significant growth and is expected to reach USD 61.45 billion by 2029, growing at a CAGR of 9.77% from 2024 to 2029. Here are some key details about the Canadian e-commerce landscape:

1. Amazon.ca

Market Share: Dominant player with 40% of retail e-commerce market share

Monthly Visits: Approximately 44 million

Amazon Canada leads the e-commerce scene with a vast product selection across various categories, including electronics, fashion, and groceries.

2. Walmart.ca

Monthly Visits: Second most visited e-commerce site

Walmart has successfully transitioned its brick-and-mortar presence to the online space, offering a wide range of products.

3. Costco.ca

Monthly Visits: Approximately 11.2 million

Costco is known for its low warehouse prices on big-brand items and has built a reputation for environmental consciousness.

4. CanadianTire.ca

Market Position: Among the top e-commerce sites in Canada

Canadian Tire offers a diverse range of products, including automotive, home, and outdoor items.

5. BestBuy.ca

Monthly Visits: Approximately 6.5 million

Best Buy is particularly known for its wide selection of consumer electronics.

The Canadian e-commerce market is characterized by a shift towards mobile commerce, increasing adoption of digital payments, and a focus on customer experience. Electronics are the most popular product category among Canadian e-commerce shoppers, followed by fashion and furniture.

Shipping your products

If you sell tangible products, you need to get them delivered into Canada but depending on the country you are in, this can be a challenge.

First of all you may have to pay import duties or settle VAT. There are certain thresholds for both of these charges, e.g. while importing in the EU you don’t have to pay import duties on any shipment worth less than € 150. 

There may also be non-financial bariers, like certifications or approvals to be obtained. Especially for food, cosmetics or medicine this may be the case. Check this in advance, even before you invest in your marketing.

VAlidate the HS-codes you use for shipping

Almost every country or trade block in the world has its own detailing on the international HS-code list. With our report you strongly reduce the risk on misclassifications, delays and higher custom duties than expected. 

Tell us what you want to ship and where to and we ask you all relevant questions to get to the most likely code.

Frequently asked questions

The best way to find an importer in Canada is to understand the sales channel for your product, and what parties are involved. Then find the right importers or wholesalers at the beginning of that chain. Before starting to push your product, approach a number of them to ask what they need. This way you can position your product better before you reach out to a broader group.
First check whether your product normally is sold through web shops in Canada or that other distribution structures are more common. Then determine the characteristics of your ideal web shop, and find a number of these, or outsource this search. When you approach the first few, you will learn what they find important and who your competitors are.
As in any country, convincing an importer or wholesaler to put your product in his assortment is difficult. Also in Canada importers look at the rotation of the product, how easy and often they can sell it, and multiply this with the margin they can make on it. The result should be higher than they earn now from any competing product. Only if you have proper sales data, for example from other countries, they will engage in a discussion with you.