Canadian Retailer - Fall 2015 - 32

GROWTH DRIVERS

costs. These are the things that make us special."
Quick and steady growth

same-day or next-day shipping. Even
big box retailers use Amazon just so
they won't lose any of their marketshare.
This is why Amazon is so advanced in
this sector- it provides so many benefits for retailers."

In just three years Shop.ca has carved out a very successful niche by offering a suite of specialized services
and benefits. The firm is adding about 100,000 new
members a year and the average order
value is increasing by about 10 per cent "Our focus on premium brands really resona year to about $200.
ates well with our customers. And our pricing
"Our growth is attributable to our structure and services and benefits are very
focus on providing solutions for Canadian retailers and customers, competi- empowering to our merchant partners."
- JAMIE HAGGARTY, Shop.ca
tive pricing and offering exceptional
benefits," says CEO Jamie Haggarty.
Shop.ca has no monthly or annual fee and is paid Dawning of a new e-era
a percentage of completed sales ranging from 5 to 25 There are smaller boutique marketper cent or higher. It focuses primarily on offering pre- places that specialize in product and/
mium brands across 27 categories with an emphasis on or service categories such as handmade
baby, home and fashion. It provides a range of market- crafts, temporary housing and finding
ing services including data analytics, browser behav- people to do odd jobs around the home.
ior, cart information, search engine marketing, email, Most internet marketplace landlords are
video and flyer production and distribution. In 2014, it independent, non-retail companies, alimplemented a loyalty program with Aeroplan which though some large retailers such as Best
now accounts for about 50 per cent of the company's Buy and Walmart are reportedly working
orders. And it also offers free shipping and returns to on creating their own online sites. But
its customers.
marketplaces provide the greatest value
Shop.ca's typical customers are young families aged to small and mid-size retailers by giving
34-49 with an average household income of $100,000 them the platform to leverage access to
and home value of $500,000 who are time-stretched and audiences they could never reach.
want convenience and value. Its 500-plus merchant part- "To do this business well you've got to
ners do their own creative work and set the price of their be known for something, whether it's a catgoods while the company provides the platform, technol- egory or service," says Haggarty. "You've
ogy and marketing to help them drive sales, including got to earn the trust of your customers
a two million dollar television advertising/promotion and retail partners, know your marketing
campaign this year.
metrics and do your marketing efficiently
"Our focus on premium brands really resonates well because you can spend a lot of money for
with our customers. And our pricing structure and not much value, and you have to have the
services and benefits are very empowering to our mer- right brands at the right time for the right
chant partners," says Haggarty.
people. E-commerce may look easy, but it
Another internet marketplace that has its advantages isn't. It's hard work."
for merchants is, of course, Amazon. It's easy to join and
provides access to a huge international audience of consumers, retailers and manufacturers. And it's this huge
audience that speaks volumes for Amazon, illustrating
just how lucrative a space the e-marketplace arena is
and the potential for retailers everywhere to market to,
reach and connect with customers all over the world.
"Amazon is really easy to join and is international in
nature," says Poologasingham. "Amazon will warehouse products of its prime members and provide free

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CANADIAN RETAILER | FALL 2015

http://www.Shop.ca http://www.Shop.ca http://www.Shop.ca

Table of Contents for the Digital Edition of Canadian Retailer - Fall 2015