Canadian Retailer - The Technology & e-Commerce Issue - 34

E-COMMERCE
E-COMMERCE AT
A GLANCE

7%

percentage of overall retail
sales generated through
online

$20 billion

annual Canadian e-commerce consumer revenues
(as of 2017)

$352 billion

total retail spending in
Canada in 2016

35%

percentage of all Canadian
retail sales growth expected in next decade

$3000

average amount U.S.
consumer spends online
in a year

$1500

average amount Canadian
consumer spends online
in a year

50%

percentage of Canadians
under 35 who make at
least one online purchase
per month

200%

percentage by which
product assortment of
Amazon.ca increased
between 2013 and 2016

$100 million

investment in Canadian
e-commerce that Walmart
made in 2015

38%

percentage of U.S. Internet
users who made an online
purchase in 1998

12%

percentage of Canadian
Internet users who made
an online purchase in 1998
Source: Boston Consulting Group

34 |

CANADIAN RETAILER

"What [Amazon] is doing is upping the online offerings available at places
ante on how early in the process you need to like Amazon or Walmart. Instead,
actually capture those consumers," he says. retailers should examine what catRetailers who don't adapt to research-hungry egories they want to develop and
customers, or invest in making their sites determine what the store's network
easy-to-navigate, well-organized, curated, will look like when e-commerce beand fast on desktop and mobile platforms comes a bigger part of the market.
risk letting Amazon swallow those customWhat retailers may find, Bodley
ers, and those sales. That's what's happening says, is that their e-commerce ofnow.
fering will be "very particular and
Retailers are battling back against this in a specific" to a category. If customers
variety of ways. Sport Chek, eager to replicate want one or two categories, retailAmazon's shipping success, now offers same- ers should deliver an experience in
day delivery in the Greater Toronto Area. those categories better than anyAnd HBC and others have automated fulfil- body else.
ment for online orders as a way to
compete. Walmart invested $100 "WHAT IS THE VALUE PROPOSITION YOU'D
LIKE TO OFFER ONLINE FROM A CATEGORY,
million into Canadian e-commerce
PRODUCT, PRICING AND ASSORTMENT
in 2015 and started offering online
LENS? WHAT IS THE OPERATING MODEL
grocery delivery to customers
THAT ECONOMICALLY MAKES SENSE FOR
living in and around the Greater YOUR BUSINESS? TACKLING THOSE TWO
Toronto Area.
QUESTIONS AT THE SAME TIME IS CRUCIAL
With significant room for growth FOR RETAILERS INVESTING ONLINE."
in the e-commerce space-online
- DAN BODLEY
is still only 7 per cent of the retail
Boston Consulting Group
spend in Canada-retailers should expect a
significant amount of incremental demand
There's also a question about
for online services from their customers. how assortment, fulfillment modRetailers that are ready and willing to satis- els, and product offerings will shift
fy this demand-and work their way into as a retailer moves into the online
the customer's mind early in the customer space. The fulfillment needs of a
journey-will capture those increasingly brick-and-mortar store differ from
channel-loyal customers.
those of online fulfilment. How will
"That is going to put pressure on the brick- retailers balance the needs of both?
and-mortar networks of the existing stores Which model works best? Many
because there tends to be a lot of fixed cost retailers have experimented with
in the system," says MacKenzie. "Retailers shipping from the store and other
need to think carefully about how they can fulfillment models. No easy formuuse the best parts of their physical network la exists. Every retailer's approach
for competitive advantage and how they re- will differ, depending on size, scale,
structure or rationalize the rest."
and commitment and investment
into e-commerce.
Sharpening the proposition
Bodley boils the challenge facing
To respond to the threat and opportunity retailers down to two main questions
of e-commerce, retailers will need to learn every e-tailer needs to answer. "What
how to sharpen their online proposition. is the value proposition that you'd
Bodley advises retailers to figure out how like to offer online from a category,
e-commerce fits into the broader offering. "If product, pricing and assortment
you think about your store network, and e- lens?" And, "What is the operating
commerce is just another channel by which model that economically makes
you're reaching the customer, what are the sense for your business?"
right categories and what are the products
"Tackling those two questions at
that you're going to want to offer offline?"
the same time is crucial for retailers
Retailers don't need to mimic the enormous investing online," says Bodley.

| THE TECHNOLOGY & E-COMMERCE ISSUE


http://www.Amazon.ca

Table of Contents for the Digital Edition of Canadian Retailer - The Technology & e-Commerce Issue

Editor’s Note
Retail Currents
Under the Banner
At Issue
Preparing for Tomorrow Today
Retail 2018: What the Future Has in Store
Living in the Future
Getting Results
Selling Across Borders
Don’t “wannacry” Anymore About Cybercrime?
How Can Technology Solve the Biggest Retail Challenges?
Channel Loyalty
Content Is King
Delivering Your Brand to the World
Small Business. Big Impact.
Leading Retailers in Canada
Advertisers’ Index
Canadian Retailer - The Technology & e-Commerce Issue - Intro
Canadian Retailer - The Technology & e-Commerce Issue - bellyband1
Canadian Retailer - The Technology & e-Commerce Issue - bellyband2
Canadian Retailer - The Technology & e-Commerce Issue - cover1
Canadian Retailer - The Technology & e-Commerce Issue - cover2
Canadian Retailer - The Technology & e-Commerce Issue - 3
Canadian Retailer - The Technology & e-Commerce Issue - Editor’s Note
Canadian Retailer - The Technology & e-Commerce Issue - 5
Canadian Retailer - The Technology & e-Commerce Issue - Retail Currents
Canadian Retailer - The Technology & e-Commerce Issue - 7
Canadian Retailer - The Technology & e-Commerce Issue - Under the Banner
Canadian Retailer - The Technology & e-Commerce Issue - At Issue
Canadian Retailer - The Technology & e-Commerce Issue - Preparing for Tomorrow Today
Canadian Retailer - The Technology & e-Commerce Issue - 11
Canadian Retailer - The Technology & e-Commerce Issue - Retail 2018: What the Future Has in Store
Canadian Retailer - The Technology & e-Commerce Issue - 13
Canadian Retailer - The Technology & e-Commerce Issue - 14
Canadian Retailer - The Technology & e-Commerce Issue - 15
Canadian Retailer - The Technology & e-Commerce Issue - 16
Canadian Retailer - The Technology & e-Commerce Issue - 17
Canadian Retailer - The Technology & e-Commerce Issue - Living in the Future
Canadian Retailer - The Technology & e-Commerce Issue - 19
Canadian Retailer - The Technology & e-Commerce Issue - Getting Results
Canadian Retailer - The Technology & e-Commerce Issue - 21
Canadian Retailer - The Technology & e-Commerce Issue - Selling Across Borders
Canadian Retailer - The Technology & e-Commerce Issue - 23
Canadian Retailer - The Technology & e-Commerce Issue - Don’t “wannacry” Anymore About Cybercrime?
Canadian Retailer - The Technology & e-Commerce Issue - 25
Canadian Retailer - The Technology & e-Commerce Issue - How Can Technology Solve the Biggest Retail Challenges?
Canadian Retailer - The Technology & e-Commerce Issue - 27
Canadian Retailer - The Technology & e-Commerce Issue - 28
Canadian Retailer - The Technology & e-Commerce Issue - 29
Canadian Retailer - The Technology & e-Commerce Issue - Channel Loyalty
Canadian Retailer - The Technology & e-Commerce Issue - 31
Canadian Retailer - The Technology & e-Commerce Issue - 32
Canadian Retailer - The Technology & e-Commerce Issue - 33
Canadian Retailer - The Technology & e-Commerce Issue - 34
Canadian Retailer - The Technology & e-Commerce Issue - 35
Canadian Retailer - The Technology & e-Commerce Issue - Content Is King
Canadian Retailer - The Technology & e-Commerce Issue - 37
Canadian Retailer - The Technology & e-Commerce Issue - 38
Canadian Retailer - The Technology & e-Commerce Issue - 39
Canadian Retailer - The Technology & e-Commerce Issue - Delivering Your Brand to the World
Canadian Retailer - The Technology & e-Commerce Issue - 41
Canadian Retailer - The Technology & e-Commerce Issue - Small Business. Big Impact.
Canadian Retailer - The Technology & e-Commerce Issue - 43
Canadian Retailer - The Technology & e-Commerce Issue - Leading Retailers in Canada
Canadian Retailer - The Technology & e-Commerce Issue - 45
Canadian Retailer - The Technology & e-Commerce Issue - Advertisers’ Index
Canadian Retailer - The Technology & e-Commerce Issue - cover3
Canadian Retailer - The Technology & e-Commerce Issue - cover4
Canadian Retailer - The Technology & e-Commerce Issue - 52
Canadian Retailer - The Technology & e-Commerce Issue - 53
Canadian Retailer - The Technology & e-Commerce Issue - 54
https://www.nxtbook.com/naylor/RETS/RETS0617
https://www.nxtbook.com/naylor/RETS/RETS0517
https://www.nxtbook.com/naylor/RETS/RETS0417
https://www.nxtbook.com/naylor/RETS/RETS0317
https://www.nxtbook.com/naylor/RETS/RETS0217
https://www.nxtbook.com/naylor/RETS/RETS0117
https://www.nxtbook.com/naylor/RETS/RETS0616
https://www.nxtbook.com/naylor/RETS/RETS0516
https://www.nxtbook.com/naylor/RETS/RETS0416
https://www.nxtbook.com/naylor/RETS/RETS0316
https://www.nxtbook.com/naylor/RETS/RETS0216
https://www.nxtbook.com/naylor/RETS/RETS0116
https://www.nxtbook.com/naylor/RETS/RETS0615
https://www.nxtbook.com/naylor/RETS/RETS0515
https://www.nxtbook.com/naylor/RETS/RETS0415
https://www.nxtbook.com/naylor/RETS/RETS0315
https://www.nxtbook.com/naylor/RETS/RETS0215
https://www.nxtbook.com/naylor/RETS/RETS0115
https://www.nxtbook.com/naylor/RETS/RETS0614
https://www.nxtbook.com/naylor/RETS/RETS0514
https://www.nxtbook.com/naylor/RETS/RETS0414
https://www.nxtbook.com/naylor/RETS/RETS0314
https://www.nxtbook.com/naylor/RETS/RETS0214
https://www.nxtbook.com/naylor/RETS/RETS0114
https://www.nxtbook.com/naylor/RETS/RETS0613
https://www.nxtbook.com/naylor/RETS/RETS0513
https://www.nxtbook.com/naylor/RETS/RETS0413
https://www.nxtbook.com/naylor/RETS/RETS0313
https://www.nxtbook.com/naylor/RETS/GrandPrix2012
https://www.nxtbook.com/naylor/RETS/RETS0213
https://www.nxtbook.com/naylor/RETS/RETS0113
https://www.nxtbook.com/nxtbooks/naylor/RETS0612
https://www.nxtbook.com/nxtbooks/naylor/RETS0512
https://www.nxtbook.com/nxtbooks/naylor/RETS0412
https://www.nxtbook.com/nxtbooks/naylor/RETS0312
https://www.nxtbook.com/nxtbooks/naylor/RETS0212
https://www.nxtbook.com/nxtbooks/naylor/RETS0112
https://www.nxtbook.com/nxtbooks/naylor/RETS0611
https://www.nxtbook.com/nxtbooks/naylor/RETS0511
https://www.nxtbook.com/nxtbooks/naylor/RETS0411
https://www.nxtbook.com/nxtbooks/naylor/RETS0311
https://www.nxtbook.com/nxtbooks/naylor/RETS0211
https://www.nxtbook.com/nxtbooks/naylor/RETS0111
https://www.nxtbook.com/nxtbooks/naylor/RETS0610
https://www.nxtbook.com/nxtbooks/naylor/RETS0510
https://www.nxtbook.com/nxtbooks/naylor/RETS0410
https://www.nxtbook.com/nxtbooks/naylor/RETS0310
https://www.nxtbook.com/nxtbooks/naylor/RETS0210
https://www.nxtbook.com/nxtbooks/naylor/RETS0110
https://www.nxtbook.com/nxtbooks/naylor/RETS0309
https://www.nxtbook.com/nxtbooks/naylor/RETS0209
https://www.nxtbookmedia.com