In 2014, eCommerce only accounted for about 6 percent of Canada’s retail spending. By 2019, that number is expected to leap to 10 percent, a number that would be virtually equal with the United States. So why has eCommerce been tough to catch on early in Canada? Experts say that it is likely due to Canadian shopping and retail habits, in addition to web access and lack of infrastructure in certain instances. Canada is rapidly improving its online structure and it is going to improve its eCommerce offerings as businesses find new ways to reach their customers.
Many businesses in Canada use Canadian merchant accounts in order to process payments. They can get these merchant accounts through credit card processors such as eMerchantBroker.com. By offering various payment options, Canada’s businesses can expand more rapidly. Digital payment options such as Apple Pay, Bitcoin, and Paypal are going to continue to become popular, and it is important for businesses to offer these payment options to their customers.
Shopping online is going to continue to grow in Canada, but there have been some holdouts. Some companies that do a lot of transportation of goods and have high shipping costs might not find online retail as profitable or easy as traditional retail. Shipping costs can quickly eat into profits, and online retailers are still finding good ways to avoid the costs. For example, if you sell a shirt in store for $8, you can see nearly all of your profit. But if it costs you $10 to ship the shirt, then you might actually lose money. These are the dilemmas that many Canadian businesses face, and it is why some of them have resisted the shift to online retail over the years.
It is likely that Canadian businesses will continue to move towards eCommerce, especially as the percentage of the population making online purchases grows. Two thirds of online traffic comes from mobile, and smartphones and tablets are making it easier than ever for consumers to make purchases instantly. Expect more Canadian businesses to start offering eCommerce options as mobile options grow.