Survey predicts bright future for e-commerce in Canada

14 Apr '20

3 min read

Pic: Shutterstock

Market intelligence firm Infiniti Research foresees a bright future of e-commerce in Canada as Canadians spent more time online in 2019 than ever before and the trend is likely to continue. Not all provinces, however, are experiencing the same growth. Regions like Ontario, British Columbia and Quebec recorded the highest e-commerce growth compared to others.

“Approximately eight in ten Canadians shop online, and they are gradually buying more often, more items, and across product categories. For companies who want to venture into e-commerce business in Canada, now’s the time!” says a manufacturing industry expert at Infiniti Research.

While several Canadians prefer to shop from Canadian online retailers, the availability of varieties on cross-border websites are attracting many shoppers towards US and European e-commerce players as well, a press release from the company said.

The future of e-commerce in the country will largely rely on enhanced buying experiences that are rooted in personalisation, convenience and a consistent, timely buying experience across all channels.

Some of the key factors driving the growth of the e-commerce sector in the country include falling shipping time and prices, developing omni-channel capabilities and weak Canada dollar and cross-border purchases.

The increased spending on online shopping by Canadian customers is largely fueled by the decreasing shipping costs in the country. As several major online retailers are now offering free or affordable shipping on a large variety of products, Canadian shoppers are now able to purchase online more frequently and without having to shell out excess money. However, the charges for coast to coast shipping may still remain high.

Majority of the Canadian population is located in urban areas and the prices of coast to coast shipping are rising. As a result, more omni-channel initiatives can be expected in the future of retail in the country.

New e-commerce trends like ship to store and store pick-up have worked well with Canadian shoppers and have helped to change their mindset to become more accustomed to shopping online without immediately losing the brick and mortar store experience.

E-commerce companies in Canada are adding products outside their traditional product scope into their offerings. One of the prime reasons behind this is the weakening Canadian dollar against other currencies.

This has resulted in fewer cross-border orders because it will cost more with the current unfavorable currency exchange rates for Canadian customers. Moreover, the shipping costs of importing from another country would also prove to be higher.

Fibre2Fashion News Desk (DS)

More E-commerce News - Canada...