April 30, 2024

Navigating the Canadian e-commerce shipping landscape 2024

Retail e-commerce revenue in Canada hit USD 52.1 billion in 2023, with 63% of shoppers buying across borders. As the e-commerce sector expands, the success of deliveries increasingly hinges on robust logistics and transportation networks. What does the delivery landscape look like? What are the key players and customer expectations? Learn our essential insights for standing out in this competitive market.

What Canadian customers want: e-commerce expectations and satisfaction

The primary factor influencing online purchases among Canadian shoppers is cost savings (64%). Key aspects closely related to e-commerce delivery include shipping costs (56%), the ability to return products (45%), and shipping times (45%).

Customers highly value fast shipping and enhanced visibility during delivery. Improved tracking and timely delivery reduce the time packages are left exposed, with consumers tracking their parcels an average of 3.2 times.

Canadian customer expectations and satisfaction from e-commerce

Canadian e-commerce shipping landscape

The majority of retailers offer home delivery

According to Deloitte, nearly two-thirds (63%) of companies offer free home delivery. Specifically, 80% of apparel retailers and 73% of electronics retailers provide free shipping. Consumers usually need to spend between $20 to $50 to qualify for free delivery, but most electronics retailers offer free shipping with no minimum spend.

Canadinan e-commerce delivery remains robust and dynamic

Parcel Monitor summarizes the overall shipping performance in Canada. In 2023, 92.3% of domestic parcels in Canada were delivered on the first attempt, and 85.4% were delivered on time. However, about 12.3% encountered issues, with nearly 8% of these due to carrier-related factors. The top international destinations for Canadian parcels were Australia, the United Kingdom, and the United States.

Major players in Canadinan e-commerce delivery

Online stores frequently use several carriers, but Canada Post is the top choice for 53% of them, primarily because it is the national postal service and the largest domestic shipping provider by volume. The following is the share of Canadian online stores that work with the following selected shipping service providers.

  • Canada Post (53%)
  • FedEx (21%)
  • UPS (19%)
  • Purolator (14%)
  • Canpar (6%)
  • USPS (4%)

Exploring Canadian Domestic shipping alternatives: beyond major carriers

Navigating the Canadian domestic shipping landscape doesn’t mean you’re limited to major carriers like Canada Post, FedEx, or UPS. For SMB e-commerce businesses seeking hassle-free shipping options at competitive rates, CIRRO E-Commerce North America offers a unified solution tailored to your needs.

Our Canada Domestic Shipping Solution provides personalized service with the flexibility to meet specific local demands, avoiding the processing delays common with larger carriers. With comprehensive coverage across Canada and a strategically located logistics hub in Toronto, our robust network and efficient warehousing ensure optimal delivery times.