A Purolator driver wears a mask as he makes deliveries in Toronto on March 24, 2020. With online sales set to hit record highs this year, Statistics Canada says that wholesalers, rather than retailers, have benefited most from the trend toward online shopping. Statistics Canada says $85 billion of Canada’s $305 billion in online sales last year went to wholesalers, while transportation and warehousing companies got $60 billion, manufacturing was worth $38 billion, and retailers grossed $22 billion.THE CANADIAN PRESS/Frank Gunn

A Purolator driver wears a mask as he makes deliveries in Toronto on March 24, 2020. With online sales set to hit record highs this year, Statistics Canada says that wholesalers, rather than retailers, have benefited most from the trend toward online shopping. Statistics Canada says $85 billion of Canada’s $305 billion in online sales last year went to wholesalers, while transportation and warehousing companies got $60 billion, manufacturing was worth $38 billion, and retailers grossed $22 billion.THE CANADIAN PRESS/Frank Gunn

Online shopping set to hit record this year in Canada

Study suggests that majority of shoppers looking online for holiday gifts

Online sales are set to hit a record this year in Canada, Statistics Canada said on Monday, amid limits on in-person shopping during the COVID-19 pandemic.

The new data is in line with Statistics Canada’s estimates from the spring, when retail e-commerce sales more than doubled from February to May.

Online shopping fell this summer from its high of $4 billion in May as more stores opened to in-person shopping.

Nonetheless, Statistics Canada says that 2020 is on pace to beat 2019’s total e-commerce sales of $305 billion, a figure that has more than doubled since 2013 and includes business-to-business sales as well as retail purchases.

A separate online survey of 600 adults from Google Canada in late October also suggested that 70 per cent of respondents were looking online, not in-store, for holiday gifts. (The polling industry’s professional body, the Marketing Research and Intelligence Association, says online surveys cannot be assigned a margin of error because they do not randomly sample the population.)

The data comes as Canada’s biggest city, Toronto, and neighbouring Peel Region entered a lockdown ahead of the key holiday shopping season, limiting non-essential retailers to curbside pickup an online sales. Only essential businesses, such as grocers and pharmacies, are open to in-person shopping for the next 28 days, and store capacity is limited to 50 per cent. Other municipalities across Canada are also tightening restrictions amid rising COVID-19 case counts.

Meanwhile, several Canadian retailers, including Le Chateau, Mountain Equipment Co-operative, GNC Holdings, and Aldo, have filed for creditor protection this year.

Up until last year, online sales represented about eight per cent of revenue for Canadian businesses with five or more employees, Statistics Canada said in the report. As of 2019, 39 per cent of large businesses had online sales in Canada, compared with 23 per cent of small businesses, the report said.

Statistics Canada also noted that in the past, wholesalers and shippers, rather than retailers, have been the top beneficiaries of the trend toward online shopping.

Wholesalers contributed $85 billion toward total online sales last year, while transportation and warehousing represented $60 billion, manufacturing was worth $38 billion, and retailers grossed $22 billion.

While one in four Canadian businesses had some online sales in 2019, Statistics Canada said goods sold in retail stores were often bought in bulk online from higher in the supply chain, meaning that the majority of online sales across the country were business-to-business.

READ MORE: Canada Post urges holiday shoppers to buy gifts early amid surge in online shopping

Anita Balakrishnan, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

CoronavirusShopping and Classifieds

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Sheriff Avory Chapman was last seen Jan. 20 on Wellington Avenue in Chilliwack. (RCMP)
RCMP look for missing man last seen in downtown Chilliwack

21-year-old Sheriff Avory Chapman has been missing since Jan. 20

A worker is seen throwing a chicken in an undercover video in 2017 filmed by California-based animal rights activists Mercy For Animals.
Fraser Valley chicken abuse trial delayed until February

Originally scheduled for a jury trial, Sofina and Chilliwack company now face judge alone

Chilliwack Law Courts. (Black Press file)
Man sentenced to 20 months for sexual interference in Mission

Will Laws Clark was 22 and victim was 13 at time offences began

Recently elected NDP MLA Kelli Paddon is funding three $500 scholarships for students demonstrating a commitment to equity and social change. (Black Press file photo)
Chilliwack-Kent MLA Kelli Paddon funding Equity and Social Change Scholarships

One of the scholarships is open to any graduating student in the Chilliwack-Kent electoral district

Richard Procee is one of four candidates in the Feb. 13, 2021 Chilliwack school board byelection. Here, he poses at his store in 2017. (Jenna Hauck/ Chilliwack Progress file)
VIDEO: Byelection candidate Richard Procee hopes to ‘introduce good conversation’ to Chilliwack school board

Procee discusses his involvement with his church, views on SOGI 123 and politics

Rose Sawka, 91, waves to her son through the window of a care home in Prince Rupert in October. Residents of the care home received their first vaccine dose Jan. 20. (K-J Millar/The Northern View)
B.C. care home visitor access to expand by March, Dix says

Staff, residents, essential visitors top priorities for vaccine

The Independent Investigations Office of BC (IIO) is looking into the death of man discovered Jan. 11 in east Maple Ridge. (Black Press files)
B.C.’s police watchdog investigating man’s death in Maple Ridge

Man was found dead Jan. 11 after recent contact with police

Rolling seven-day average of cases by B.C. health authority to Jan. 21. Fraser Health in purple, Vancouver Coastal red, Interior Health orange, Northern Health green and Vancouver Island blue. (B.C. Centre for Disease Control)
2nd COVID vaccine doses on hold as B.C. delivery delayed again

New COVID-19 cases slowing in Fraser Health region

Provincial health officer Dr. Bonnie Henry talk about the next steps in B.C.’s COVID-19 Immunization Plan during a press conference at Legislature in Victoria, B.C., on Friday, January 22, 2021. Two more cases of the COVID-19 strain first identified in South Africa have been diagnosed in British Columbia, bringing the total to three as of Jan. 16.THE CANADIAN PRESS/Chad Hipolito
B.C. now has three cases of South African COVID-19 variant, six of U.K. strain

Both variants are thought to spread faster than earlier strains

Rodney and Ekaterina Baker in an undated photo from social media. The couple has been ticketed and charged under the Yukon’s <em>Civil Emergency Measures Act</em> for breaking isolation requirements in order to sneak into a vaccine clinic and receive Moderna vaccine doses in Beaver Creek. (Facebook/Submitted)
Great Canadian Gaming CEO resigns after being accused of sneaking into Yukon for vaccine

Rod Baker and Ekaterina Baker were charged with two CEMA violations each

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Police discovered a makeshift nightclub in a Vancouver apartment on Jan. 23, 2021, and say it wasn’t the first time this month officers have been called to the unit over social gathering concerns. (Phil McLachlan - Capital News)
Doorman of makeshift ‘booze-can’ in Vancouver apartment fined; police look to court order

This marks the fourth complaint about social gatherings inside the apartment in January

A Kelowna couple welcomed their Nooner baby in December. (Flytographer)
Kelowna couple welcomes baby girl from Hotel Zed Nooner campaign

Nicole and Alex will now have 18 years of free stays at the hotel

Kyrell Sopotyk was drafted by the Kamloops Blazers in 2016 and played two seasons with the Western Hockey League club. (Photograph By ALLEN DOUGLAS/KTW)
Kamloops Blazer paralyzed in snowboarding accident sparks fundraiser for family

As of Jan. 24, more than $68,000 had been raised to help Kamloops Blazers’ forward Kyrell Sopotyk

Most Read