The news: Amazon is preparing for a deeper push into Canada in a bid to keep pace with rivals such as Walmart, Best Buy, and Loblaw, per Business Insider.

The retailer plans to expand fulfillment capacity, same-day delivery, and its logistics network in the country.

Zoom out: The advantages of expanding in Canada outweigh any risks posed by the recent escalation in the trade war between the US and Canada in the retailer’s estimation. Amazon expects package volumes in Canada to grow more than 40% between 2026 and 2029, with annual growth rates expected to consistently surpass those in the US during the same period.

But it’s also facing increased competitive pressure. While Amazon is by far Canada’s top ecommerce retailer, according to our forecast, Walmart and others are making inroads. The recent launch of Walmart+ in Canada threatens to narrow the gap further by providing shoppers with similar benefits to Prime, including free shipping, unlimited free same-day delivery on orders over C$35 ($25), and access to the Crave streaming service.

Unlike in the US, where Amazon leads the way in fast delivery, the retailer lags behind its Canadian competitors. Just over half (54.5%) of Canadian Prime members qualify for same-day delivery, while rivals can get orders in less than four hours to between 70% and 85% of Canadian households, according to internal documents seen by Business Insider.

Implications for retail: Amazon’s decision to forge ahead in Canada despite what’s set to be a bruising trade war reflects both the importance of the market and the challenges of investing through policy volatility. While the retailer’s ecommerce sales in the country are six times those of Walmart, its closest competitor, its dominance could be pressured as more Canadian shoppers look to support local businesses and a fresh volley of tariffs threatens to raise prices.

Speeding up fulfillment and offering more convenience to Canadian households could enable Amazon to close the delivery gap with rivals, while offering lower-cost products via Haul and other initiatives could strengthen its value appeal should prices rise. Those moves won’t eliminate the geopolitical challenges but could offset some of their impact on Amazon.

Go further: Read our Canada Ecommerce 2026 forecast.