Amazon is planning to nearly double its same-day delivery reach in Canada, and internal documents reveal exactly why: Amazon currently offers same-day delivery to only about 54.5% of Canadian Prime members, while competing retailers including Walmart, Loblaw, and Best Buy can already reach between 70% and 85% of Canadian households within just two to four hours. Amazon's own planning material treats that gap as a serious competitive threat, not a minor operational detail.

If you sell into Canada, this data point explains a lot about why the competitive landscape there has been shifting so fast lately.

The Numbers Behind Amazon's Canada Push

Amazon projects Canadian deliveries jumping more than 40% by 2029, driven by a deliberate push to close the same-day coverage gap against its fastest-growing Canadian rivals. That comparison isn't identical across every product category or region, but Amazon's own internal assessment treats the gap as real and urgent enough to justify significant new investment.

The competitive pressure driving this is coming from multiple directions at once. Walmart Canada has been expanding third-party marketplace selling and nationwide pickup infrastructure, and Walmart+ officially launched in Canada earlier this year, bundling a streaming service the same way Amazon Prime does, a direct copy of the exact playbook that's made Amazon's own membership program so sticky. Loblaw and Best Buy have both been deepening their own delivery and marketplace investments simultaneously.

Tariffs Are Reshaping Amazon's Sourcing Strategy at the Same Time

Here's where this story connects to something bigger than delivery logistics alone. Tariffs have already prompted some Canadian direct-import sourcing to shift from the United States to China, adding a second, unrelated pressure onto Amazon's Canadian growth plans at the same moment it's trying to fix its delivery speed gap. Retail Insider's own framing of the Business Insider report put it directly: the tariff war is colliding with Amazon's plan for growth in Canada.

That collision is worth understanding in the context of the broader US-Canada tariff dispute currently playing out, where Canada's own counter-tariffs took effect September 8 on a wide range of US goods. Amazon is trying to simultaneously speed up its Canadian delivery network and reroute sourcing away from tariff-exposed US supply chains, two structural challenges that don't have the same solution and are competing for the same investment dollars.

Why Canada Has Become a Genuine Battleground Right Now

This isn't happening in isolation. Canada's B2C ecommerce market is growing at a 7.5% compound annual rate through 2029, projected to reach roughly $119 billion by then, a large enough prize that every major retailer operating there has real incentive to fight for share rather than cede ground.

That fight is showing up in infrastructure investment beyond just Amazon. GOFO, the Chinese-backed last-mile carrier, just launched Canadian operations with hub coverage reaching roughly 90% of the population, a direct bet that Canada's delivery infrastructure gap creates room for a new entrant. Amazon's own AI-powered Creative Agent tool, launched in Canada earlier this year to help advertisers build ad creative at no additional cost, is a separate signal of how much Amazon is investing across its full Canadian operation right now, not just logistics.

What This Means If You Sell Into Canada

If your Canadian sales have felt slower to convert or ship compared to your US business, Amazon's own internal data confirms that gap is real and structural, not something specific to your operation. A same-day delivery footprint covering barely half of Canadian Prime members is a genuine limitation compared to what Walmart, Loblaw, and Best Buy are already offering, and it affects how competitive your Amazon Canada listings can be purely on delivery speed grounds.

Watch how quickly Amazon actually closes this gap over the next few years, since a same-day delivery expansion this large will directly affect your own Fulfilled by Amazon delivery promises and Featured Offer competitiveness in the Canadian marketplace specifically. In the meantime, if you're evaluating alternative fulfillment or carrier options for Canadian orders, this is a reasonable moment to test newer entrants like GOFO against your current setup, given that even Amazon's own data confirms the country's delivery infrastructure is still very much in flux.