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Canadian Fulfillment Sector Continues to Show Strong Growth

Amazon Canada has just announced that they will hire 15,000 new warehouse and distribution employees across the country in light of the growth experienced by direct-to-consumer companies across the globe.

While brick and mortar stores have been losing ground to online retail since the start of 2010, this trend has accelerated at an exponential rate over the last 12 months. In fact, Canadian e-commerce sales have climbed by close to 20% in the last year alone, moving from 43.11 billion dollars in 2019, all the way to 52.04 billion dollars in 2020.

And it is important to note that this trend does not appear to be slowing down. With e-commerce spending expected to reach close to 80 billion dollars by 2024, Canada has become one of the fastest growing e-commerce markets in the world

With this in mind, Amazon Canada has also stated that they will be increasing the starting wages for its front-line employees across the country to somewhere between $17 an $21.65 an hour, which is way up from its current starting wage of $16 an hour.

Similarly, existing employees are also set to receive an additional $1.60 to $2.20 per hour, starting immediately, irrespective of how long they’ve been with the company.

In a recent interview, Sumegha Kumar (the director of Canadian customer fulfilment operations for Amazon Canada) clearly stated that “we are growing very rapidly in the country”. She followed up with “our business is expanding a lot, and we want to continue to stay focused on our customers, so we obviously have needs around hiring and retaining top talent.”

We also need to consider the fact that Amazon Canada already has 25,000 employees in 25 communities across five provinces. This is in conjunction with the 46 warehouses and delivery facilities located in Canada.

In short, Amazon Canada is huge — and they are investing billions of dollars to boost their footprint because of the expected e-commerce growth.

There is no need to read between the lines here.

Amazon, and other Canadian fulfillment providers are confident that e-commerce businesses are going to become the main source of retail in Canada in the very near future. And they want to make sure that they are prepared when it happens.

As someone outside of the order fulfillment industry, there are two ways you could take this information — the negative, or the positive way.

Looking at this negatively, some might get disheartened by the fact that Amazon is taking the lion’s share of the e-commerce market. They might be inclined to see this as a form of competition that simply cannot be competed with.

But this is shortsighted.

For those in e-commerce, this news should come as a godsend. As a clear indication that direct-to-consumer transactions and Canadian fulfillment are here to stay — and that more spending online means more opportunities for business across the nation.

Especially for those who actively partake in ‘cross-border-sales’ via Canadian fulfillment with products from China, where goods can enter the country completely tax and duty free, under the right circumstances.

The pool of consumers is large enough for everyone involved. Canadian fulfillment providers know it, and you should too.

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