Ecommerce is one of the fastest-growing sectors worldwide, with more people than ever choosing to make purchases online. This growth is particularly apparent in Canada, which has seen 10% year-on-year growth over the last few years. The total value of all Canadian online sales in 2022 is expected to reach $79.8 billion. If this growth rate continues, the Canadian eCommerce market should reach a value of $104 billion by 2025.
Online sales are now outstripping retail sales, posing challenges to existing businesses while also creating opportunities for new ones. Canadian businesses have been quick to adopt new technology, and the country overall has seen a lot of economic growth. Cities such as Toronto are seen as some of the most attractive areas to start a business, and many new eCommerce organizations have launched in the last few years.
Established retail companies such as Walmart and others have needed to adapt to the growing trend of eCommerce, and many businesses have made big changes. The ones that haven’t adapted face serious challenges going forward, as eCommerce platforms are now one of the main ways people purchase a variety of different goods.
What Challenges Does Ecommerce Pose to Big Businesses?
Online shopping and eCommerce platforms are overtaking traditional retail businesses, leading to increased competition and new challenges for established stores. This has led to a lot of unexpected changes for bigger businesses, meaning they’ve had to change their practices and adapt to survive. Over the last 25 years, eCommerce has gone from being something that was overlooked by many businesses to becoming a key part of their business model.
Ecommerce has become one of the main sales channels for a lot of industries, with a growing number of people choosing to make purchases online. Not only this, but many customers use eCommerce platforms to learn more about products before they buy them. They read reviews, check prices and take a look at the available pictures to learn more about products they’re interested in. This is a major advantage for eCommerce sites over traditional retail stores, where the same kind of information isn’t available.
To compete with the growing availability of eCommerce stores and the advantages that they offer to businesses, many retail companies have launched their own online platforms. You can now shop online from many of the biggest retail stores and find all of the same products that are available in-store. In addition, retail stores offer the option to buy online but collect in-store, making it much easier for customers to purchase items without worrying about delivery times.
Retail stores do offer the advantage of giving customers the chance to see the products up close before they buy. However, the growing number of customers that choose to buy online shows that this no longer has the impact on the buying process that it once did. The main reason for the shift to buying online is convenience. As a result, retail businesses need to focus on providing better convenience, as well as providing more information on each product.
Why is Ecommerce Growing So Quickly in Canada?
With oil prices plummeting, Canada’s priority has switched to technology. Canadian Prime Minister Justin Trudeau promoted Canada as a technological center at the World Economic Forum, and the country has looked to become a world leader in technology. In recent years, the tech scene in Canada has exploded, with loads of big startups originating in the country.
Startup founders and entrepreneurs are drawn to Canada from all over the world thanks to better immigration laws, lower costs of living compared to the US, and a high density of talent. Canada is now home to a plethora of technological firms with the technical know-how and financial resources to assist the country in ushering in a new era of eCommerce.
Tech companies offer next-generation technologies and platforms that have the potential to alter the way Canadians buy services and products online. These technologies will allow online merchants and retailers to increase productivity while lowering operating expenses. Many tech companies are now focused on creating solutions for eCommerce that makes it even more convenient and accessible to the average person.
Since 2010, some of Canada’s leading technology firms have raised more than $1 billion in cash from 388 investors from across the world. This clearly demonstrates Canada’s ability to drive e-commerce innovation and advance digital retail to new heights. It also shows the appetite that investors have for eCommerce platforms and is a great example of why these businesses have grown so quickly.
The Canadian eCommerce market shares a lot of similarities to that of the United States. Because both countries are developed and share a border, they also share a lot of the same market trends. The following are some of the key trends influencing the Canadian eCommerce market:
- Hybrid purchases/”Click and Collect” — This is where customers get the best of both worlds. They have the ease of browsing products and purchasing online before picking them up from the store. This means that all of the advantages of eCommerce are available such as convenience and information, with none of the disadvantages, such as waiting for deliveries.
- ● Social media marketing – Retailers are increasingly spending marketing dollars on social media ads as the return on investment for using social media continues to improve. Platforms such as Facebook, Instagram, and even TikTok can provide a high ROI for certain products, and eCommerce platforms are making more use of these than ever.  Organizations such as AWISEE specialize in content marketing, helping eCommerce brands reach new markets.
- Cybersecurity – fraud is an increasing threat around the world and in Canada too. Cybercrime detection and deterrence tools are becoming more widely available and affordable, and their integration is frequently included in a company’s strategic planning.
- Mobile payments – Consumers want easier ways to pay for things online, and mobile payment platforms such as Apple and Google Pay are increasingly accepted at Canadian eCommerce sites. These payments are also more commonly accepted by retail stores too, meaning it’s easier and more secure than ever to make fast payments when shopping.