Thursday, September 29 2022

Amazon is the number one e-commerce company in Canada, according to a new survey from RBC Capital Markets. (Photo by Artur Widak/NurPhoto via Getty Images)

While Canadians bought less online in 2021 than the year the pandemic hit, a new survey from RBC found that Amazon remained the top e-commerce brand among online shoppers.

RBC Capital Markets Canadian Annual e-commerce survey found that Amazon (AMZN) is still the market leader in Canada, with 84% of Canadians saying they’ve purchased an item from the online retail giant in the past year. The second most popular brand was Walmart, with 36% of respondents saying they had purchased an item from the company’s site in the past year.

The survey of 1,519 Canadians via SurveyMonkey also found that 54% of respondents say they visit Amazon at least once a week, and 35% say they buy items from the site between one and three times a month. Most customers turn to Amazon for electronics, music and movies (43%), followed by clothing, shoes and accessories (41%) and books (37%).

“Amazon’s advantage is driven by low prices and cost of delivery,” said the RBC report, written by analysts Sabahat Khan and Irene Nattel.

“These results continue to indicate that Amazon’s overall strategy of offering a wide selection, at prices consumers perceive to be the lowest in the market, and with prompt delivery, delivers a strong value proposition.”

Amazon has steadily expanded its presence in Canada, increasing the number of fulfillment centers scattered across the country, as well as expanding its business and technology teams in Toronto and Vancouver. The e-commerce giant announced in December that it would speed up shipping speeds to Yellowknife, Northwest Territories and Whitehorse, Yukon, halving average delivery times from 10 to 12 days to five.

While Amazon still leads in online shopping, overall e-commerce levels have moderated slightly in Canada from the records reached during the height of the COVID-19 pandemic. RBC’s survey found that 63% of respondents visit online retail sites at least once a week, down slightly from 65% in 2020. However, more people are continuing to shop, with nearly third (29%) of respondents saying they buy things online at least once a week, up from 25% in 2020.

The survey also found that shoppers who shopped online in the past year were the most likely to buy books, electronics, music, movies and toys. Categories that saw the fewest online shoppers included groceries, mattresses and furniture, but the survey found online demand for these items had ‘increased slightly’ over the past year. .

Alicja Siekierska is a Senior Reporter at Yahoo Finance Canada. Follow her on Twitter @alicjawithaj.

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