As far as I can see, if your purchase is over $50, you are protected by the
Consumer Protection Act in Ontario.
Late delivery
26 (1) A consumer may cancel a future performance agreement at any time before delivery under the agreement or the commencement of performance under the agreement if the supplier,
(a) does not make delivery within 30 days after the delivery date specified in the agreement or an amended delivery date agreed to by the consumer in writing; or
(b) does not begin performance of his, her or its obligations within 30 days after the commencement date specified in the agreement or an amended commencement date agreed to by the consumer in writing. 2002, c. 30, Sched. A, s. 26 (1).
So there may be other avenues to pursue if he insists on charging the cancellation fee. If you have time, I'm sure you could follow up with the Ontario Ministry of Consumer Protection to see what your rights are.