Ecommerce in Canada 2017: The Digital Disruption of Retail - eMarketer

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Ecommerce in Canada 2017: The Digital Disruption of Retail

eMarketer Report

By: eMarketer

Published: February 13, 2017

Jump to: Executive Summary | Table of Contents | List of Charts

Executive Summary

Ecommerce in Canada has been slower to develop than in the UK, the US and other countries because of unique challenges serving the market. But a major disruption is now underway as competition from Amazon and other international players has raised the stakes. More significant, however, is the role played by growing consumer demand.

  • Double-digit annual gains in retail ecommerce sales are driving what growth there is in Canada’s retail sector. Traditional retail sales are relatively flat, as investments skew heavily toward digital retail experiences for consumers. By 2020, ecommerce will make up 10.0% of total retail sales in Canada.
  • Canada lags behind other developed countries in ecommerce adoption, mainly because retailer investment returns are hard to attain in a huge country with a dispersed population. The gap is closing in more densely populated pockets of the country as urban consumers’ demand for digital retail options grows.
  • Retailers are feeling the “Amazon effect,” which is forcing them to invest in digital and meet consumer demands for better ecommerce experiences. Hybrid fulfillment models like click and collect are being rolled out, especially in grocery.
  • eMarketer estimates there will be 19.2 million digital buyers in Canada this year, well over half the total population. These buyers are increasingly omnichannel, meaning they engage with retailers in multiple ways (online, in-store, on social media) and on multiple devices.
  • This omnichannel consumer exhibits key traits: shopping and transacting more on mobile; looking across the border for better assortment and price; and relying more heavily on digital options during the busy holiday season.

"Retail ecommerce sales in Canada continue to climb, both in real terms and as a proportion of total retail. By 2020, retail ecommerce sales will total CA$55.78 billion ($42.09 billion)."

Table of Contents

Sizing Up Canada’s Ecommerce Market

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For Retailers, Omnichannel Is the New Normal

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Five Key Things to Know About the Omnichannel Consumer in Canada

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19 charts are included in the full report:

Ecommerce in Canada 2017: The Digital Disruption of Retail

Retail Ecommerce Sales in Canada, 2015-2020 (billions of C$, % change and % of total retail sales)

Sizing Up Canada’s Ecommerce Market

Retail Ecommerce Sales in Canada, 2015-2020 (billions of C$, % change and % of total retail sales)

Retail Sales in Canada, by Industry, 2011-2015 (billions of C$)

Retail Ecommerce Sales in North America, by Country, 2015-2020

Top 25 Countries, Ranked by Retail Ecommerce Sales, 2015-2020 (billions)

Five Key Things to Know About the Omnichannel Consumer in Canada

Digital Shoppers* and Buyers** in Canada, 2015-2020

Reasons that Internet Users in Canada Purchase In-Store vs. Digitally, Feb 2016 (% of respondents)

They Rely on Online Shopping During the Holidays

Retail Ecommerce Holiday* Spending in Select Countries, 2016 (billions)

Primary Channel Where Internet Users in Canada Plan to Shop for Holiday Gifts, 2015 & 2016 (% of respondents)

Media that Holiday Shoppers in Canada Plan to Use for Black Friday/Cyber Monday Shopping Information, Sep 2016 (% of respondents)

Channels/Locations Where Internet Users in Canada Research/Purchase Black Friday Sales, 2013-2016 (% of respondents)

They Shop Cross-Border, Especially from the US

Digital Buyers in Canada and the US Who Make Domestic vs. Cross-Border Digital Purchases, Oct 2016 (% of respondents)

They Are Finding Domestic Purchasing More Attractive

Reasons that Digital Shoppers in Canada Plan to Purchase Holiday Gifts from Digital Retailers in Canada*, Oct 2016 (% of respondents)

They Are Making More Purchases on Mobile

Retail Mcommerce Sales in Canada, 2015-2020 (billions of C$, % change and % of total retail ecommerce sales)

Mobile Share of Monthly Purchases According to Mobile Buyers in Canada and the US, Aug 2016 (% of total)

Cyber Weekend* Ecommerce Metrics in Canada, by Device/OS, Nov 2016

Mobile Shopping Services/Features that Internet Users in Canada Use/Would Be Interested in Using, 2015 & 2016 (% of respondents)

They Rely on Social to Learn About Products, Not to Buy

Leading Commerce Channels According to Retailers Worldwide*, June 2016 (% of respondents)

Digital Shoppers in Canada Who Have Shopped Directly via Buy Buttons or Brand Ads on Social Media, by Demographic, Oct 2016 (% of respondents in each group)

Reasons that Digital Shoppers in Canada Would Consider Purchasing an Item Directly via Buy Buttons or Brand Ads on Social Media, Oct 2016 (% of respondents)