Canada E-commerce Logistics Market Overview, 2027

"Canada's digital transformation has propelled the growth of online shopping, with a portion of the population embracing e-commerce. Cross-border trade is a key aspect of the Canadian market. Proximity to the United States and trade agreements with various countries enable Canadian consumers to shop from international retailers. This necessitates efficient cross-border logistics operations to manage customs regulations, international shipping, and timely deliveries. The country's geography presents both urban and rural dynamics. Urban centers face congestion challenges, while remote rural areas require logistics solutions to navigate vast distances. Tailored strategies are needed to ensure efficient and timely deliveries across the country.Winter weather conditions pose additional challenges. Harsh winters, snowstorms, and icy roads impact transportation and logistics operations. Logistics providers must account for weather-related delays and ensure the safe and timely delivery of packages during winter months. Sustainability is gaining importance, with a focus on eco-friendly practices. Logistics providers are adopting sustainable measures such as eco-friendly packaging, optimizing transportation routes to reduce emissions, and investing in electric vehicles and alternative fuels. Understanding and catering to regional preferences is crucial. Canada's cultural diversity translates into distinct regional preferences, requiring logistics providers to adapt to language preferences, product choices, and delivery expectations. Government regulations related to data privacy, product safety, and taxation must be followed for legal operation and maintaining consumer trust. According to the report titled, ""Canada E-Commerce Logistics Market Overview, 2027,""published by Bonafide research, the market is anticipated to grow over the forecast period as online merchants are increasingly opting for outsourcing of logistics for error-free, fast delivery and on-time delivery to consumers. They support logistics but also, in some circumstances, return management, inventory flow, and warehousing. As a result, the work of the online merchants is made easier because these e-commerce logistics partners don't focus on supply chain management. In order to stop the transmission of illness during pandemics, delivery partners have recently developed into contactless delivery partners. E-commerce logistics is anticipated to expand its inventory and returns management services as it becomes simpler for the logistics provider to keep records for the same and burdens the online retailer with these tasks. They might concentrate on different facets of the business. International delivery is not well developed for e-commerce sales and frequently involves third parties. It is less well-liked because it is also expensive.

The challenge faced by the industry is consumers' privacy as they trust them with not only basic information like contact numbers and addresses but also bank details. The risks of data breach have increased as a result of e-commerce logistics. The pollution added by the transport vehicles due to increased vehicular traffic on the roads is a challenge for the logistics companies. But, over a period of time, the invention of electric vehicles is expected to lead to a greener delivery system that is environmentally friendly. Logistics companies are adopting the electric vehicle trend for their logistics needs because they are cost-effective, lightweight, and environmentally friendly. Fraudulent purchases or cash on delivery transactions increase online retailers' concerns because customers may reject their purchases, resulting in revenue loss for the companies.For a number of reasons, the e-commerce logistics market is expected to grow slowly. Price is a major factor in e-commerce logistics services as it has to be a fair price keeping in mind the consumer's capability. The fuel prices and manpower needed are highly price sensitive. If the price is too high, it may result in the abandonment of the basket. However, it can be overcome by offering discounts and price schemes to consumers so they do not feel the burden of the price. The delay in shipping and delivery causes anxiety to consumers as they are highly impatient to receive their orders as soon as possible. In some cases, the consumer is lured into paying a higher price for quick delivery. It is a messy job to handle and process the returns by the logistics provider as brands do not want to discourage the buying habits of the consumers and it affects the brand image of the product. For this, mastering the process and at the same time thinking of cost-effective solutions is of utmost importance. Growing environmental concerns have created challenges for the packing of these products for transit and adaptability to possible returns. Transportation services lead the market growth as it is essential for logistics service providers, and warehousing and other services fall under optional services if they wish to provide them. The integration of e-commerce logistics with transportation management software (TMS) has boosted the e-commerce logistics market's growth. TMS aids in planning deliveries across the supply chain. Transportation plays an important role in successful e-commerce transactions. It offers scheduled delivery with flexibility, tracking and doorstep delivery. This helps online retailer’s gain customer confidence by providing efficient services and on-time delivery that further accelerate e-commerce sales and logistics. Domestic e-commerce logistics has gained prominence in the industry with the rise in home delivery services and the growth of online shopping. Consumers are inclined towards quick and door-step deliveries for even their basic needs like groceries, medicines, and other household necessities. The busy consumer lifestyle where both partners are working mostly prefers online shopping rather than wasting time hopping from store to store to buy different products. Online retailers have made it effective to purchase all their needs from a single platform, which saves a lot of time for consumers. This is a major factor in increasing domestic logistics. Domestic e-commerce unveils a bucket of opportunities for small enterprises and individuals involved in trade, reducing the price of purchases and expanding their sales in developed and developing countries. This enhances the domestic e-commerce logistics market.

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Manmayi Raval

Research Consultant

The pandemic in a way bolstered the e-commerce logistics market as consumers were confined to their homes and opted for essentials at the click of a button. Consumer e-commerce shopping has increased as internet penetration has increased. The approach changed from C2C to B2C with last mile deliveries. Consumers have now become accustomed to e-commerce purchases and are expected to remain the same after the new normal. At the same time, logistics service providers pushed themselves to become more tech-savvy to meet the delivery needs of online firms at competitive costs. The adoption of electric delivery vehicles has led to greener systems. Considered in this report • Geography: Canada • Historic year: 2016 • Base year: 2021 • Estimated year: 2022 • Forecast year: 2027 Aspects covered in this report • Canada E-Commerce Logistics market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation

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By service type in the report: • Warehousing • Transportation • Other Service (Return, Inventory management) By operational area in the report: • International • Domestics By transportation mode in the report: • Road • Rail • Air • Sea By product type in the report: • Electronics • Apparel and Accessories • Home Furnishing Products • Health, Personal Care and Beauty • Auto and Parts • Baby Products • Books • Others The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to e-commerce logistics industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry. Please get in touch with our sales team to find out more. """" """