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Canadians have embraced E-Commerce since the last 20 years. But the bulk of the transactions have transpired in the past 5 years. As consumers have begun to lap-up the new trend, their demands have risen too. Nevertheless businesses are forthcoming to hand them myriad benefits on a platter as it is a win-win situation for both.
Here we analyse Canadian digital customers and their online shopping habits. The analysis will assist retailers gain valuable insight to tap in with the right strategy to succeed.
There is good news for Canadian businesses as the propensity for shoppers to shop local than go for International (US) goods is tacit. That is 62% prefer to purchase in Canada than from US. A study conducted by Mindshare came up with similar results wherein 60% considered buying a Canadian brand imperative and 64% were resolute on choosing a Canadian retailer. Online shopping in Canada will get healthier as studies suggest, is good portent to businesses and shoppers alike.
There was a 65% increase in the spending culture of Canadians online. In 2017 a shopper spent $106 during an average session, while in 2018 it rose to $175. And 33% respondents in a survey said that they would prefer to shop online. 42% shoppers went in for diverse goods even though they were engaged exploring for other products.
But experts acquiesce that online shopping in Canada has a long way to go before they catch up with developing nations on this technological trend. Hence they are left with little respite but to look across the border for goods of their liking.
Shipping costs too play spoilsport to inspire online shopping habits due to disproportionate levies.
Online Shopping in Canada
A Canadian survey reported 46% of shoppers comprised of the urban crowd, 37% suburban and 17% were from rural locations. Online rural shoppers are not smitten by the trend due to lack of selection, delayed deliveries and poor internet connections.
But businesses can find solace in the fact that 90% on Canadians own a smartphone and 62% have utilized it to buy online. While 33% used a smartwatch or voice-activated attribute to shop. Shoppers comprise 47.5% men and 52.5% women. 55% of Canadian online shoppers have experienced post-purchase issues.
80% Canadians confirmed that their shopping habits online has risen steadily while 20% do not agree. 66% Canadians have registered with Amazon or Alibaba as compared to 58% last year, endorsing the fact that the online trend is gaining ground.
Choice of payment: by credit card (61%) and 21% use PayPal, importance of protecting payment information is paramount.
Canada’s Digital Revenue
Canada’s Ecommerce sales is expected to breach $36 billion US dollars this year and retail eCommerce of physical goods is projected to reach 26.11 billion US dollars.
This year the total retail eCommerce sales is expected to grow by 10.4% to $69 billion Canadian dollars. This includes all products/services ordered online, exclusive of travel and event tickets.
2019 online sales is expected to touch 9% of total retail sales here. Canada’s online business income through eCommerce solutions totaled $21 billion in 2018 and is projected to exceed $32 billion by 2025.
Online Shopping Experience in Canada
Retailers who do not offer omni-channel shopping and seamless transactions will see their market shares dip. Consumers desire speed, service, selection, experience, and a fair bargain.
- 47% will recommend a retailer, which further increases to 59% if their experience was impressive.
- 35% of Canadian online shoppers expect more details and better quality pictures.
- 23% want to know if the products are in-stock before ordering.
- 21% want better and easier website navigation
Number of Canadian consumers researching online or in-store before a purchase is comparable. Previously stores were concerned that shoppers only window shopped or just viewed products and purchased online. But the trend shows that 61% of shoppers researched online before an in-store purchase, activity such as price comparison, browsing websites and looking for online offers. While 65% analysed in-store, comparing rates, seeking recommendations from friends & family before purchasing.
55% of Canadian shoppers experienced hitches when purchasing a product online, compared to 31% in-store.
The top complaints of Canadians purchasing online:
- Website poor response (15%)
- Goods not available (15%)
- No assistance to complete purchase (14%)
- Website difficult to navigate (13%)
- Goods not getting loaded into cart (12%)
- Compelled to login/sign-up (23%)
- Variance of online and in-store prices (18%)
- Cannot order online and pick-up at store (16%)
- A coupon/gift card could not be utilized (17%)
- Goods out of stock (15%)
After Placing Order
The top post-purchase complaints are:
- Delayed delivered (17%)
- Tracking not available (16%)
- Goods return policy unclear (14%)
- Loyalty points not included (12%)
- Returning goods very inconvenient (12%)
- Had to pay for returning goods (14%)
- Queries not cleared (13%)
- Delayed refunds (11%)
- Goods damaged (12%)
19% of Canadians expect orders to arrive within two days. 25.5% of Canadians are prepared to pay $10 for shipping, but 53.2% expect free shipping.
Delivery preferences influencing sales in Canada
- 67% say free shipping is a game-changer.
- 44% need diverse delivery options.
- 40% prefer self-pickup of orders.
- 3% refrain purchasing goods if free offer of return is not inclusive.
- 6% prefer to return their items to a store.
- 21% took delivery at place of work.
- 71% prefer registering with brands having loyalty program.
- 51% would purchase from those having loyalty program.
- 4% prefer pre-paid return labels if goods need to be sent back.
- 69% ready to pay for quick delivery.
- 55% abandoned carts as free delivery was not available.
- 80% shopping international check to see if additional charges are included.
- 71% need convenience of try-before-buying implemented.
- 40% check return policy before deciding to buy or not.
- 7% refrain from buying jewelry online due to poor return policy.
- Online shoppers are undeterred about return of sporting goods, outdoor equipment and health & beauty products.
To retain brand loyalty and create a positive shopping experience the return-process ought to be effortless. Retailers who have not optimized this aspect lose credibility and lose a sizable chunk of consumers.
A Canadian Report found delivery information to be of utmost importance to Canadians at the point of checkout. Failing to provide that information resulted in abandoned carts and a reluctance to shop with the retailer further in future.
Top Site for Online Shopping in Canada
One of the invigorating retailers based in Montreal with a diversified portfolio. This retailer deals with several luxury labels and brands in their collection such as A-cold-wall and off-white. They lean towards streetwear and are youth focussed.
Being based in Canada duties and brokerages are pay on arrival. Ssence offers 3 day free shipping return within Ontario and Quebec, while rest of the country it’s 7 days. There is an option to return within 14 days of purchase with free shipping label provided on request.
They have good year end offers with wonderful discounts and the website has amazing offers to make you a trending fashionista.
Other Famous Brand – Asos –
Asos is a UK based site that has a myriad of brands to choose from and amazing collection for women’s and men’s clothing and accessories.
With its inception in 179 this oldest department store is growingly web-savvy. The site portrays several ensemble of famous designers like Phillip and Ellery. Simons private label Twik is interesting and worth a look for the millennial, especially the fairer sex.
Shipping and returns are free. 30 days return on regular merchandise and 10 days for sale items.
The website is worth a try as it may be difficult to find a physical store near you. As in downtown Toronto and closest is in Mississauga.
Other Famous Brand – MeUndies –
Get your underwear delivered home. MeUndies specializes in cosy and snug fit underwears for both men and women with diverse cuts and refreshing patterns.
Gucci blouses are sold alongside Staud’s bucket bags on this London-based site. Stocked creatively, fashioned and tailored with a mix of recognized labels and funky newbies.
A $20 average shipping cost with 14 days return policy and another 14 days to send back the goods.
The incredible trait with Matches is products from the European Union are shipped free to Canada.
There are stores that bring dreams to life. During travels you run into secret stores and innovative brands in cities such as California, NJ, NY or Broonlyn. But you prefer shopping comfortably and not during a travel, Garmentory takes care of that, the best brands of North America on one platform to shop.
Shipping varies with location. Orders over $100 are shipped free within your country.
Discover fresh brands, new designers and small businesses with wonderful inventory in the confines of your luxury.
Founded in 2018 with upcoming brands like Wasted Effort, Sony Lee known to be Uber, chick, alluring, charming and truly Canadian.
Shipping is free within Canada for 1 or 2 days delivery.
We love our inbred designers. It’s time we sit up and take notice on what they have on offer.
Other Famous Brand – Dress911 –
Dress911 is a lifestyle not just dress. This Canadian website has a huge selection of pretty vintage-inspired clothing and accessories at affordable prices.
New classics studios
Looking for jewellery, branded clothes, Canadian or International brands, Classic studios operating out of Calgary is for you. It is bewitching, with classy online stuff from Wolf Circus to aesthetic Spanish clothing Paloma Wool.
Shipping free within Canada – 1 or 2 days delivery schedule.
Influencers on social media like Instagram parade famous brands and the hoi-polloi want to get their hands on them. You have extremes here from the latest to the vintage to placate all body-types.
Other Famous Brand – Blame Betty –
is a renown, fame-inspired clothing and accessories store in Calgary. They have a nice selection of delightful cute dresses, amazing bathing suits, and captivating shoes.
You wish all your prized footwear were on one site, then this one’s for you. Your dreams come true with mules to cowboy boots, what’s in vogue, trending, serving you fetish and passion. They stock jewellery, bags and eyewear.
Orders over $100 shipping and returns are free. Everything is duty-free.
Other Famous Brand – ShoeMe –
has a great collection of shoes for men, women, and children from top-notch designers.
You can find anything from Fendi carryall to Tom Ford blouses here. This up market sophisticated Toronto located store has desirable stuff with them.
Shipping ranges $15 to $25 depending on size. For western Canada $20 to $25. Strict return policy of 24 hours.
VSP has a good stock of quality pictures on their site. TheRealReal and Vestiare Collective are for those with deep pockets buying Prada or #OldCeline. They come up good deals on special occasions.