Our Merchant Success Manager, Katie, participated in a webcast titled E-commerce in Canada: Current Landscape and Trends to Watch on February 27, 2020. Here’s what she learned:
Canada Post surveyed 5,000 Canadian online shoppers about their shopping habits and analyzed how ecommerce merchants can harness this customer base. Presented by Jonathan Critch, Manager, Parcels and E-commerce at Canada Post, the webcast explained the major insights from their recent ecommerce report.
Getting a piece of the action
Ecommerce is a $65-billion industry. 80% of Canadians shopped online in 2019, with 32% planning on shopping even more in the future: Canada Post projects an estimate of $108 billion in spending for 2023. And, it turns out that age matters. The highest percentage of online shopping is done by those aged 53-72 (37%), followed by Millenials at 28%, and GenXers at 25%. The latter two age groups, however, are more often considered HYPER+ shoppers, meaning they make 25 or more online purchases per year.
Takeaway #1: As ecommerce evolves and shoppers become savvier, there is increased pressure for retailers to differentiate themselves to stand out.
Marketplace vs. Social Media
The survey also found that 75% of Canadian online shoppers have shopped from a domestic marketplace. 42% of eMerchants sell on marketplaces, while 55% sell through social media like Facebook (95%), Instagram (69%) and Twitter (15%).
Takeaway #2: Determining where you want to sell is important.
Business models matter
Revenue-boosting selling models are growing. 11% of online customers have received subscription boxes in the last year, with an average of two subscriptions. The most popular subscriptions are meal kits (28%), food and beverage (25%) and beauty (22%). Recurring deliveries, as well, are growing, with 8% of online shoppers on board in 2019. Of these, the market favours beauty products (32%), groceries (28%) and health products (27%).
Takeaway #3: Determining how you want to sell is important
The final analysis
So where does that leave you? How do you leverage this information for your business?
Simply put, with so many options and opportunities, shopper expectations are high. In order to stand out and succeed, you’ll need to provide value and options rooted in your customers’ preferences.
Read the full 2020 Canadian e‑commerce report.
Need more guidance? Start with Able Sense’s Ecommerce Action Plan.