Canada Post today announced the launch of the Canada Post E-commerce Innovation Awards, a competition designed to recognize and reward successful innovation in e-commerce in Canada.

Canada Post says that the competition will see e-commerce retailers will compete in five categories for prize packages worth a total of $1 million.

The categories are Best Multi-Channel Retailer of the Year, Best Online Retailer of the Year, Best New E-Business, Outside the Box Achievement Award, and Consumer Champion Award. The first awards will feature two winners—one for large businesses and one for small—for a total of seven winners.

“For more than two centuries, Canada Post has been the largest enabler of remote trade and commerce and it is vital that we lead the way for the future,” said Deepak Chopra, Canada Post President and CEO. “We hope these awards will inspire entrepreneurs to create a whole new e-economy for Canadians.”

Instead of cash, Canada Post is offering services very valuable to e-commerce businesses such as shipping. Winners will receive up to $100,000 in free parcel shipping as part of their reward.

According to Canada Post, an estimated $8 billion worth of physical goods is ordered online in Canada each year for residential deliveries, and that figure is forecasted to grow to more than $15 billion by 2016. Total expenditures on Canadian e-commerce business-to-consumer shipping services alone were more than $600 million in 2011.

With the help of a blue-ribbon expert panel of judges, Canada Post will select the best entrants and announce the winners on October 16 in Toronto. E-commerce retailers in Canada who ship to Canadian consumers are eligible and must submit their entries online by end of day Monday, August 20 to one category.