Significant Increase in Direct Traffic since implementing Stape

Hi,

Our website has started receiving an increase in direct traffic from USA since implementing stape. Woocommerce site. This is also curious because we are a Canadian company, and do not advertise in the USA (though we have got traffic from blog). Is this traffic legitimate, or not? Any way to tag this traffic so it doesn’t get labelled as direct?

This sounds like some problem in your setup or configuration errors. Do you make any modifications to the ip address? Do you use one or more Google tags?

I followed the stape setup instructions, no modifications I do not believe. No extra tags, in the stape woocommerce plugin I made it not add the tag and traffic went to 0, so no extra tags anywhere.

sGTM and the server itself does not modify GA4 events in any way, nor does it modify any of them. In the case of GA4 it just works as a proxy.
So what you described is completely related to tagging/tracking configuration issues.
I can recommend to run a preview of your containers, debug mode in GA4 - it will definitely help you to detect potential problems.