Canada’s e-commerce sector is booming in 2025, attracting entrepreneurs and investors from around the world. With the rise of e-commerce startups in Canada, businesses are innovating in logistics, AI-powered personalization, and sustainable practices. For anyone wondering how to start an e-commerce business in Canada, this guide will provide actionable insights, top startup examples, and government resources to launch and scale your online store successfully.
Why Canada Is Ideal for E-Commerce Startups
Canada provides a supportive environment for startups, including tax incentives, grants, and a highly skilled workforce. Cities like Toronto, Vancouver, and Montreal are major tech hubs offering access to investors and incubators. The Canadian government even provides resources for new business owners here: Canada Business Network.
How to Start an E-Commerce Business in Canada (Step-by-Step)
- Choose Your Niche – Identify a market with high demand but low competition. Use tools like Google Trends or Shopify Insights.
- Register Your Business – Incorporate federally or provincially and obtain a business number for taxes.
- Select an E-Commerce Platform – Shopify, WooCommerce, and Lightspeed are popular Canadian options.
- Set Up Payments – Integrate Stripe, PayPal, or local payment gateways.
- Plan Logistics – Partner with reliable fulfillment and shipping services like Canada Post or third-party logistics providers.
- Market Your Store – Use SEO, social media, influencer marketing, and email campaigns.
- Legal Compliance – Ensure privacy, returns, and consumer protection policies are in place according to Canadian law.
Top 10 E-Commerce Startups in Canada (2025)
1. Swap
- Founded: 2022
- Founders: Sam Atkinson & Zach Bailet
- Location: Toronto, ON
- Overview: Swap is revolutionizing e-commerce logistics by offering an AI-powered platform that consolidates cross-border shipping, order tracking, return management, and inventory forecasting. Their flagship product, Swap Inventory, helps clients forecast trends and manage demand efficiently. With a $40 million Series B funding round, Swap is expanding its presence in North America and Europe. Business Insider
2. Knix
- Founded: 2013
- Founders: Joanna Griffiths
- Location: Toronto, ON
- Overview: Knix is a direct-to-consumer brand specializing in innovative intimates and activewear. Known for its inclusive sizing and comfort-first approach, Knix has built a loyal customer base and continues to expand its product offerings.
3. Flashfood
- Founded: 2016
- Founders: Josh Domingues, David Zussman
- Location: Toronto, ON
- Overview: Flashfood is a mobile app that connects consumers with grocery stores to purchase surplus food at discounted prices, reducing food waste and saving money. The platform has partnered with major retailers across Canada.
4. SkipTheDishes
- Founded: 2012
- Founders: Chris Simair, Josh Simair
- Location: Winnipeg, MB
- Overview: SkipTheDishes is a leading food delivery service in Canada, offering a platform for users to order meals from local restaurants. The company has expanded its services nationwide and continues to innovate in the delivery space.
5. Busbud
- Founded: 2011
- Founders: LP Maurice, Gabriel Lavoie
- Location: Montreal, QC
- Overview: Busbud is an online platform that allows users to search, compare, and book intercity bus tickets worldwide. The company aims to make bus travel more accessible and convenient for travelers.
6. Voices
- Founded: 2005
- Founders: David Ciccarelli, Stephanie Ciccarelli
- Location: London, ON
- Overview: Voices is a marketplace connecting businesses with voice-over talent for various projects, including commercials, e-learning, and audiobooks. The platform has a global reach and serves clients across multiple industries.
7. G Adventures
- Founded: 1990
- Founder: Bruce Poon Tip
- Location: Toronto, ON
- Overview: G Adventures is a social enterprise offering small-group tours to destinations around the world. The company focuses on sustainable travel and community-based tourism.
8. BuildDirect
- Founded: 1999
- Founders: Jeff Booth, Rob Banks
- Location: Vancouver, BC
- Overview: BuildDirect is an online marketplace for home improvement products, connecting homeowners and contractors with suppliers. The platform offers a wide range of products, including flooring, decking, and kitchen materials.
9. Vendasta
- Founded: 2008
- Founders: Brendan King, Jeff Tomlin
- Location: Saskatoon, SK
- Overview: Vendasta provides a platform for digital marketing solutions, helping businesses manage their online presence and marketing efforts. The company serves a global customer base, offering tools for SEO, social media, and reputation management.
10. Dozr
- Founded: 2016
- Founders: Darryl Jenkins, Chris McNamara
- Location: Toronto, ON
- Overview: Dozr is an online marketplace for heavy equipment rentals, connecting contractors with equipment owners. The platform aims to make construction projects more efficient by providing easy access to necessary machinery.
Canada’s e-commerce sector in 2025 is vibrant and full of opportunities. Whether you’re an aspiring entrepreneur or an investor, keeping an eye on these startups can provide valuable insights into the industry’s direction. For more updates on innovations in Canadian business and insights into new partnerships and company highlights, follow BestStartup.ca
