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E-Commerce Thrives in Canada

JUNE 29, 2006

Canadians still lag US consumers in their use of online shopping, but their interest and usage are growing.

By Debra Aho Williamson - Senior Analyst

FBLI
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According to a survey by J.C. Williams Group of 1,312 Canadians who had purchased online in the past six months, 32% had made five or more purchases and 68% had made one to four purchases.

Online Purchases Made in the Past Six Months by Online Buyers in Canada, April 2006 (% of respondents)

Canadian e-commerce is growing substantially. According to Statistics Canada, total e-commerce sales were CAD39.2 billion ($32.4 billion) in 2005, up 38.4% from 2004. The figures include both private and public sector sales over the Internet.

E-Commerce* in Canada, by Sector, 2001-2005 (millions)

The percentage of Canadian retailers that have a website grew to 42% in 2005 from 38% in 2004, according to Statistics Canada.

Retailers in Canada that Have a Website, 2000-2005 (% of total retailers)

One thing that Canadian consumers are interested in is the potential to shop or buy online and then pick up their merchandise at a retail store or return it there. According to the J.C. Williams survey, 38% of respondents had bought online and picked up their purchase in a retail store in the past six months.

Online Buyers in Canada Who Picked Up an Online Purchase at a Retail Store, April 2006 (% of respondents)

Just 17% had returned online purchase to retail stores, J.C. Williams found.

Online Buyers in Canada Who Returned an Online Purchase at a Retail Store, April 2006 (% of respondents)

Jeffrey Grau, a senior analyst at eMarketer, says "Online buyers who visit a store to pick up or return products frequently make impulse purchases. Numerous recent consumer studies have shown that multi-channel shoppers, on average, spend more with a retailer than single-channel shoppers."

Getting a customer in the store also introduces them to things they may not have seen online, which could spur additional purchase activity.

The J.C. Williams study also found that 73% of Canadian online shoppers prefer to pay with credit card. However, 27% prefer other methods. By comparison, a 2005 study by Princeton Survey Research Associates for Consumer WebWatch found that 26% of US Internet users don't use credit cards online.

Among Canadians, concern about credit card safety was the top barrier to online shopping, according to J.C. Williams.

Leading Barriers to Online Shopping according to Offline Buyers in Canada, April 2006 (% of respondents)

For more information on e-commerce in Canada, sign up to be notified when eMarketer's Canada Retail E-commerce report is issued in 2007.

Detailed data on US e-commerce can be found in eMarketer's US Retail E-Commerce report. 

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