eCommerce and Canada
Canadian eCommerce growth was recently flat however still has an attractive upside…
Recent studies found that Canadian retail e-commerce growth was flat year over year (2003-2004). When additional examination but, approximately sixty% of the 100 largest non-travel sites succeeded in growing their sales over 20%.
Also attention-grabbing is that the trending of Canadians from buying at non-Canadian sites to domestic sites (sixty three% domestic, 37% foreign). This “domestic shift” clearly advantages the launching of a brand new eCommerce business in Canada.
The sales chance lies with the “early adopters”, people primarily the eighteen-34 year old age range. This segment is additional technologically savvy and more possible to get online. In a 2003 to 2004 sampling comparison, this phase’s overall e-commerce spending increased forty four%. The thirty five to fifty four age cluster increased only 5% and 55+ increased 18% (includes online travel).
Overall Internet Adoption rates still trail the U.S. and come back in at approximately 52%. However, with the development of new Web infrastructures and therefore the maturation of Canadian ISP’s, this range will probably rise in the subsequent three-5 years. The following quote from the Canadian government re-enforces this theme.
“To achieve our new national goal (relating to e-commerce) Canadians can need to develop ways that build an intelligent infrastructure to serve as the backbone of the e-economy- by encouraging investment, strengthening analysis, enhancing commercialization and guaranteeing that each one Canadians have access to the current infrastructure and understand a way to use it.” (September, 2004)
Shifting demographics & lack of online competition equal a considerable chance…
Forrester Analysis reports that forty eight% of Canadian net shoppers are now feminine compared to 39% in 2003. 74% of internet consumers are married and doubtless are home shoppers, compared to 68% in 2003.
With the gender gap closing, online home retailers have a great chance to focus on their core customer segment: the 30-40yr recent feminine who owns or maintains a residence.
Within this sector, it’s rare for U.S. based retailers to have on-line Canadian stores. Many brands will ship to Canada, for terribly high prices (customs duty & shipping) however this doubtless ends up in an unpleasant experience for the Canadian consumer. These high prices, compiled with a lack of domestic Canadian retailers providing an e-commerce providing, are driving the stagnant growth of the net sales channel.
By being a “1st-mover” in establishing a presence in the net marketplace among Canada, on-line retailers can facilitate sales from customers that need to get merchandise shipped from their native homeland when being obtained in Canadian currency.
Similar to the U.S., shoppers are exhibiting multi-channel tendencies and embracing the emergence of broadband connectivity…
Canada is the sole country in the planet in that broadband overtook dial-up access in 2003. Currently 48% of all Canadian shoppers have broadband access and they are sixty seven% additional probably to possess high speed internet-access than Yank consumers.
This spectacular penetration could sway be a robust driver for online circulars and new online merchandising ways, as product differentiation are established outside of price.
Canadian shoppers are parallel to U.S. consumers in their multi-channel behavior. 58% of Canadian shoppers have researched a product online and purchased offline, spending an average of $440. An online Canadian strategy should focus on integrating the net and physical store with store locator functionality and other tools to push cross-channel behavior.
In conclusion, multi-national retailers should closely examine the Canadian eCommerce opportunity. Enticing client demographics, an established broadband infrastructure, and a shift in overall shopping tendencies create the Canada a high-growth and un-saturated space for multi-channel retail.
To discover the secrets of a real online dropshipper, visit this site: drop shipping companies. drop shipping companies about to reveal how you can have your very own “unfair advantage” over the competition. Get the very exclusive guide from drop shipping companies today!
More From retlub
- E-Commerce Solutions and Multimedia presentations
- Signing Up Tips And Tricks
- E-Commerce Solutions and E-Commerce Business Solutions London, UK
retlub Recommends
- Blogging And Networking Both On And Offline (Chad Nicely)
- 30 and loving it (SEO Philippines)
