Though only 6% of retail sales were online in 2010, the past 12 years have grown the eCommerce industry into a behemoth.
As of 2022, pretty much everyone is shopping online. This includes college students, young professionals, stay-at-home moms, retired grandparents, and everyone in between.
Here, we’re going to share some interesting online shopping statistics that everyone should know. Read on to understand more about the Canadian and global markets for eCommerce shopping in the present day.
eCommerce Sites Are Not Rare
As of 2022, there are about 26 million eCommerce sites operating worldwide.
This is twice the number of shops that existed prior to 2021 when the pandemic was at its peak. In fact, there was a 204% growth rate over the span of a single year.
Before 2021, there were only 9.7 million eCommerce shops. After it, there were 19.8 million. 2022 has seen the launch of 6.2 million new sites.
The US Has the Lion’s Share of the eCommerce Market
About 9.5 million eCommerce sites are based in the US. This makes it the largest nation for online shopping across the globe.
Other countries in the top 5 online shopping markets are:
- Great Britain (with 0.85 million retailers)
- Germany (with 0.46 million retailers)
- Brazil (with 0.44 million retailers)
- Australia (with 0.39 million retailers)
Canada comes in at 8th place. Here, we have about 0.3 million online retailers.
The US is therefore the most popular eCommerce nation by a landslide. However, since most American online shops ship abroad, the entire world including Canada can reap the benefits of this US market.
Currently 80% of Americans Shop Online…
Like Canadian consumers, the vast majority of US consumers enjoy online shopping. Their online consumers amount to about 263 million people. By 2025, this number is projected to increase to around 291.2 million.
Not only do most people make purchases over the web, but they prefer to do so. 56% of Americans say that online shopping is their preferred purchasing method. This is a 10% increase from 2020 statistics, which shows higher demand for eCommerce than ever before.
…And Almost as Many Canadians Do, Too
American statistics are relevant because of their leading market share in the eCommerce industry. But what about online shopping in Canada? As it turns out, it’s pretty popular here as well.
About 75% of Canadian consumers like to shop online. This amounts to about 27 million eCommerce users. While this is a significantly lower number than the number of online shoppers in the US, it is close to the same percentage of the population (as Canada has far fewer people in it than the US does).
Canada’s eCommerce Market Is Growing
eCommerce sales in Canada may look relatively low by the number, but the market is growing a lot. By the end of 2023, it seems as though 80.1% of Canadians will be digital shoppers. This is over 5% more eCommerce users than currently are making purchases.
We can expect year-over-year (YoY) growth of about 10.4% by the end of 2022. The market will reach almost $80 billion across Canada at this point.
Additionally, the eCommerce market is also projected to grow in the coming years. 2023 should see growth up to $77.8 billion while 2023 will bring the market up to $96.2 billion.
By 2025, it will likely reach about $104.77 billion.
Global eCommerce Consumption Also Looks Good
Shopping online isn’t limited to the American and Canadian markets. In fact, global eCommerce sales have superseded $4.9 trillion as of the beginning of 2022.
By the end of the year, the market will likely be worth about $5.5 trillion. By the end of 2025, experts project that it will reach $7.4 trillion.
To conceptualize how large this market is, consider the size of Japan’s economy. Their entire GDP is $5.1 trillion, which is an unfathomable sum to most people.
The online shopping market is bigger than the overall GDP of Japan.
Millennials Do the Most Online Shopping
Young people are the most interested in purchasing goods and services online. In fact, millennials make up over 20% of online shoppers! Because this figure is from 2020, we can also expect to see an increase in the future.
People ages 35-44 are the second largest group of online shoppers. They make up over 17% of the market.
As you can see, younger people are more likely to use the web for their purchasing needs. This shows a shift towards eCommerce shopping in the future. As younger Americans begin to make up the bulk of shoppers, the demand for online options will likely increase, too.
Reaching Gen Z consumers also is becoming easier and easier with social media. They represent about 1/3 of the population and are active on social media. Assuming that eCommerce shops tailor their marketing efforts to multiple social media platforms, it will be easier to reach these demographics in the future.
Related: Canadian social media stats
Online Shopping is Merging With In-Store Sales
Because online shopping has become so ingrained in our society, people now look for an online presence before even considering buying from a business. In fact, 76% of global consumers scope out a company online before physically visiting it.
While this doesn’t have anything to do with eCommerce directly, it shows the growing hold that the internet has on our purchasing decisions. This is important because consumer demographics are moving toward web-based decisions. That fact holds true even when people make purchases from physical stores.
Amazon Is the Top Dog in the eCommerce Industry
The eCommerce market is a big one, but a single retailer owns the majority of it: Amazon. The retail behemoth owns about 56.7% of the largest eCommerce market in the world in the US. It also owns over 13% of the global eCommerce industry.
This is especially interesting when you consider its growth over the past few years. In 2014, Amazon only owned a 28.1% US market share. This means that the past 8 years have doubled its hold on online shopping.
Amazon also is the largest eCommerce market in Canada.
Many people think that growing a large business is more challenging than building a small one. However, Amazon is a real-life example that proves otherwise.
eCommerce Shops are Diverse
However, eCommerce is popular even past Amazon. In fact, there are many different industries that operate with eCommerce.
Clothing and apparel is the largest eCommerce market in the world with a $2 trillion market value. This makes sense since it’s easy to browse clothes, look at detailed product photos and videos, and order the item directly to your house.
However, there are other popular industries that sell items online. Electronics and consumer technologies have an internet market size of $1.14 trillion. The online shoe market is worth $530 billion.
Other popular online industries include:
- Pet products
- Office supplies (pens, pencils, etc)
- Power tools
- Water tools
- Wireless charging ports
- Jigsaw puzzles
The point is that there is a diverse range of eCommerce stores. Online shopping spans countless industries.
Canada’s Leading eCommerce Markets
While clothing is the largest eCommerce market in the world, electronics is the leading market in Canada’s online shopping industry. There are 3,326 Canadian electronic eCommerce websites that consumers can shop at.
The fashion and furniture market is, however, the 2nd most popular market for shipping online in Canada.
However, because of the size of the US eCommerce market, Canadian consumers often buy from US-based merchants. This especially makes sense when you consider the proximity of the two countries and how easy it is to ship between them. The US has more options for online shopping as well, so Canadians can find products more easily there.
Products that Canadians are buying from American merchants the most are apparel, accessories, books/music/videos, consumer electronics, toys/hobbies/games, and health/beauty products.
Credit Card Is the Most Common Canadian Payment Method
Canada’s international trade commission, the same body that gave us the previous statistics, also calculated the payment methods that Canadian eCommerce shoppers prefer. 59% of Canadians link credit cards to online stores and pay that way.
This is by far the most popular payment method. The 2nd most common is PayPal, which only makes up around 20% of Canadian online purchases. The remaining 21% of payments include other online vendors, checking accounts, cryptocurrency, and more.
However, online wallets like PayPal are growing in popularity. These wallers include Venmo, Amazon Pay, Apple Pay, Samsung Pay, and AllPay.
Experts project that 27% of eCommerce purchases throughout Canada will be made with these digital wallets. This makes sense since technologies are growing, eWallets are extremely convenient, and using them requires little personal information.
Beyond the Best Online Shopping Statistics
Now that you know some of the top online shopping statistics around the world, it’s time to boost your own web presence. HeyTony is committed to helping Canadian businesses launch engaging eCommerce sites that visitors will love.
Our experts specialize in web design, marketing, eCommerce platform creation, and more. Contact us to discuss the specific ways that we can boost your foothold in both the Canadian and global online shopping markets.