Canadian Retailer - Summer 2013 - 33

IN 2012, an estimated $21.45 billion in e-commerce sales were

online purchase. While “low impact” purchases
registered in Canada, up from $15.3 billion in 2010. By 2016, such as packaged goods, apparel and clothing,
Canadian consumers are expected to spend up to $35 billion computers, electronics and books still make up
online. While that might seem like a large figure, e-commerce the majority (70 per cent) of online purchases
actually represents only about 3.7 per cent of total retail sales in in Canada, e-commerce is quickly spreading to
Canada, below that of the United States, where online sales are all retail categories, including health and beauty
estimated at between 4 and 9 per cent of total retail sales.
products, toys and hobbies, downloaded prodRecent studies on the state of e-commerce in Canada by a ucts, tourism, travel and leisure, home hardware,
committee of the federal Department of Industry, Science and furnishing and decorations and sporting goods.
Technology and by independent research firms, as
well as interviews with industry experts, all reveal “the expectation of customers today is to
that Canadian retailers are playing catch up with have an omnichannel shopping experience
respect to e-commerce. This isn’t news for those which includes the entire ordering, purchasing
operating in and around the industry, but it may and delivery process in the e-commerce,
be heartening to some to know that the majority of bricks and mortar and mobile channels…fully
Canadian retailers are now rapidly investing in e- functional and fully integrated...”
commerce infrastructure to meet the high expecta— MICHEL JONCAS
tions of Canadian consumers and the stiff compeGroupe Dynamite
tition from large U.S. retailers who are entering the
Canadian market.
In April, independent research company For“We’re very encouraged by the growth we are seeing in e- rester released a State of Canadian Online Recommerce year over year and how Canadian consumers are tail report that Hart says was a “wake-up call”
getting more and more confident with shopping and purchas- for Canadian retailers. The report painted a
ing online,” says Rod Hart, general manager of product man- rather gloomy picture of the state of Canadian eagement and development for Canada Post’s $900 million do- commerce, stating some concerns of Canadian
mestic parcels business. “We’re encouraged by seeing some of online shoppers, which include high shipping
the larger retailers like Hudson's Bay Co. setting up fully inte- costs, poor product assortments, lack of comgrated online stores and merchants everywhere who are recog- petitive pricing, shipping, return policies and
nizing the importance of e-retailing and are connecting with payment options. The report also mentioned
their customers across all touch points. It’s all very exciting.”
that although Canadian retailers have improved
in their e-commerce initiatives, they still have a
growing across categories
long way to go to meet consumer expectations
According to Online Shoppers and Buyers—A White Paper and compete with U.S. and European retailers.
sponsored by Canada Post and conducted by J.C. Williams
“Until recently with the entry of large U.S.
Group, online shopping is commonplace today. More than 88 per retailers like Target and Nordstrom with their
cent of Canadians use the Internet and 78 per cent have made an mature e-commerce platforms, Canadian re-

retail e-commerce in canada
in 2010 was $15.3
billion, almost
double the level in
2005. the average
value of internet
orders for the year
was $1,362 per
person with 89.4
per cent of electronic orders paid
by credit card*

2012

$35.0B

$15.3B

$21.4B

E-COMMERCE IN CANADA AT A GLANCE

2016

online buyers
spent an estimated $21.45 billion
in 2012. that is
expected to rise
to $35 billion in
2016**

3.7%
88%

TOTaL CDN
ReTaIL SaLeS

e-commerce
represents 3.7 per
cent of total retail
sales in canada**

62%

78%

More than 88 per
cent of canadians
use the internet,
and of those 78 per
cent have made an
online purchase**

*e-Commerce in Canada: Pursuing the Promise. Report of the standing Committee on Industry,
science and technology. may 2012
**Online Shoppers and Buyers – White Paper. Canada Post and J.C. williams Group. february 2013
***The State of Canadian Online Retail – 2013. forrester Research Inc. april, 2013

BY 2014
canadians are
among the world’s
fastest adopters
of smartphones.
by 2014 mobile
commerce sales
will equal that of
e-commerce*

62 per cent of
online shoppers
say the price of
products is the
number one factor
that influences
their purchasing decision. 68
per cent believe
delivery costs are
too high and 56
per cent say making a return is too
difficult***

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Canadian Retailer - Summer 2013

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