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~ eShopWorld~

he Canadian market The most important factor for Canadian online shoppers is price.
Canadians love to shop online, especially with for- 37% of respondents according to the analysis cite ‘price/promo-
Teign brands that can offer a great shopping experience tions’ as their primary consideration for online purchases. It is
coupled with fast delivery and low prices. The Canadian online becoming more habitual for Canadian shoppers to compare prices,
market is one of the largest e-commerce markets in the world. including shipping and taxes, across brands.
It had estimated market revenue of $39.97 billion USD in 2018.
This number is expected to grow to $53,74 billion USD by 2022. Canadians prefer to pay in their local currency (75%). Therefore,
Currently, there are a little under 27 million online shoppers in pricing must be in Canadian Dollars ($CAD) and be clearly
Canada, which is 73% of the total population. Of these online marked as such. A standard dollar sign may mislead the shopper
consumers, 45% like to buy cross-border. In the past year, the to believe a product is priced in American Dollars ($USD).
number of cross-border shoppers has grown by 5%, which is more
than double the growth of the United States. Logistics leader
Despite its large size, Canada can be seen as a world leader in
In Canada, online shopping is still driven by a shopper’s ability logistics. This is particularly important for Canadians who shop
to compare products and prices across brands in their own time, cross-border, as they expect fast delivery regardless of their loca-
outside of a shopping centre. This 24/7 shopping convenience is tion in the second-largest country by size in the world.
extremely important to Canadians, particularly on a mobile device.
Next year, mobile commerce is forecasted to make up nearly 33% Canadian shoppers, particularly millennials, demand a seamless e-
of e-commerce sales in Canada. commerce experience down to the last mile and beyond. Experienc-
ing this when ordering a product can be a great trigger to increase
Popular categories brand loyalty. Stakes are, therefore, high for international brands.
As in many countries, Canadians love to shop for fashion. Regard- 34% of Canadian millennial online shoppers say they stop shopping
ing Canadian online shoppers, 80% said they have shopped online with a brand if they have had a bad delivery experience. To encour-
in the past year. Amongst shoppers, fashion is the most popular age repeat purchases, brands need to establish relationships with
online shopping category, with a revenue of $11.78 billion USD in Canadian shoppers by providing a great delivery experience.
2018. Canadian shoppers are also branching out into other product
categories, as their trust for online shopping and brands increases. Amongst many online Canadian shoppers, the speed of delivery
Spending is increasing in categories such as toys, hobbies, and Do It is their main concern when shopping online. Other delivery issues
Yourself (DIY), as well as electronics. Across all of these categories, rank high in studies on this topic. A study of 3000 online shoppers
there is an average online spend of $1.493 USD every year. in the US, Canada, and the United Kingdom found that brands that
attract younger customers are generally more critical of delivery and
Shopping behaviour fulfilment than their older counterparts, as well as the importance
International online shopping is very popular with the under 55s. of timeliness and affordability to consumers. This is especially im-
Research has revealed that 66% of 18-34-year-olds and 55% of portant as Canadians are very unlikely to pay for premium shipping
35-54-year-olds bought a product from a foreign website in the options. Their general expectations are already very high.
last twelve months, compared to 29% of the 55+ year-olds.
Conclusion
The Canadian retail industry has transformed substantially and It is clear that the Canadian market is an exciting and lucrative
grown in recent years. According to Canada Post, so-called hyper opportunity for online brands. However, it is not without its
shoppers, shoppers that mostly buy online, present one of the challenges, such as complex customs paperwork, high insurance
biggest opportunities in Canadian e-commerce. This target group costs, and strict import regulations. Navigating the logistics of
is characterised as making at least 25 online purchases a year and one of the world’s largest countries is costly and time-consum-
represent the most lucrative shopper segment. ing, resulting in limitations that affect a brand’s ability to sell
into Canada. This is why many of the retail brands succeeding
In a recent meta-analysis conducted by eShopWorld, almost in Canada are working with a partner that understands the
10% of respondents indicated that they ship to the border of the challenges of logistics in the region. They have the experience
United States and collect their products here in order to avoid and expertise to ensure every order is delivered on time and as
high shopping costs, duties, and taxes. In the same survey, 74% cost-effectively as possible. They may also choose a partner with
said shipping costs would prevent them from shopping. fulfilment hubs in the region to better meet shopper expecta-
tions, especially if they are based further abroad.
It is millennial shoppers in Canada in particular who love to
compare prices across brands and stores when shopping online. Do you want to know more about Canada? Download the eShopWorld
Therefore, brands need to provide as much relevant information whitepaper ‘How to succeed in Canada: a playbook for international brands.’
as possible on product pages. If you are using discount codes, it http://bit.ly/2XWGtEn
is extremely important to be clearly visible to shoppers as they
browse your website.

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