As vaccination rates rise and the weather warms in Canada, many individuals are hesitantly emerging from hibernation and the obligatory quarantines to re-enter pre-pandemic activities. Some practices, however, have become permanent, such as how some individuals shop today.
Online shopping is rapidly expanding in Canada, which means e-commerce is increasingly becoming a must for Canadian businesses and many B2B enterprises. As a result, the eCommerce sector, in which consumers and companies purchase and sell items and services solely through electronic means, has grown steadily over the last decade.
Electronics and media are Canada’s largest category, accounting for 28% of total eCommerce revenue. Fashion comes in second with 27%, Hobby, toys, and DIY comes in third with 19%, Furniture and Appliances come in third with 16%, and Food and Personal Care come in fourth with 11%.
They are among the most popular online buying categories in Canada. In a 2018 poll, many Canadian customers claimed that they preferred online over in-person purchases because of the superior product range and the ability to save time and money by digitally looking through the goods.
Retail sales from global electronic commerce are expected to increase from 3.53 trillion US dollars in 2019 to more than 6.54 trillion in 2023. Canada has been a particularly profitable market due to its sizable digital population in recent years. eCommerce retail trade sales in late 2019 totalled about 1.85 billion Canadian dollars, with around 28.1 million Canadians making online purchases. The retail e-commerce market’s revenue is predicted to exceed 33 billion US dollars by 2024, up from 25.4 billion in 2019.
Stats and Facts Regarding Online Payment in eCommerce
Numerous intriguing aspects of the Canadian eCommerce business stand out in terms of online payment. According to a recent survey, despite many technical improvements in the field of online payment services and the proliferation of payment providers, credit cards have been the favoured payment option for online shopping for some years.
This tendency reflects certain Canadians’ beliefs regarding digital money transfers and their reluctance to adopt such services. In 2018, 18% of Canadian respondents acknowledged feeling extremely uneasy about making digital transactions. Older internet users are also less inclined to save personal credit card information with a mobile app or e-commerce site, but younger mobile users are more interested in and trusting of technology such as mobile wallets.
There is a noticeable growth in Canadians who are willing to utilize more non-traditional and complex payment methods. In 2019, 43.2% of Canadian smartphone users reported using a mobile banking application, while another 20.4% used the PayPal app to perform financial transactions.
The Growth of eCommerce Across Canada: Here’s All You Need to Know in 2022 Share on XOverall, Canadians are increasingly eager to embrace the world of eCommerce, are getting more responsive to new and inventive payment methods, and are becoming more comfortable keeping data and shopping online.
While development in Canada’s e-commerce business has been gradual, market estimates indicate that the sector will grow considerably in the next few years. Although these projections might change if more Canadian shops and customers decide to investigate and use the benefits of eCommerce, these particular predictions could come to fruition.
Is Canada the Perfect Place for Launching an eCommerce Business in 2022?
The Canadian eCommerce business has experienced exceptional growth in recent years, peaking shortly after the pandemic’s commencement but developing steadily following that first spike. Consumers’ buying patterns have shifted dramatically, with more purchases made online for necessities and non-essentials.
After investing in their digital infrastructure and online shopping platforms over the previous two years, many firms are looking for the next step in digital innovation to acquire a competitive edge in a post-pandemic environment.
While some firms strive to provide more value through expanded product options, free delivery, and flexibility, others aim to recreate the in-store shopping experience with new technologies such as Live Shopping, which combines social media live streaming and eCommerce.
Others strive for a better brand image through CSR programmes that include sustainability and social justice in basic business activities. A balanced blend of these three tactics will likely produce great results for eCommerce companies as we continue to live in 2022.
It’s been mentioned many times that eCommerce is the future of retail. While nothing will likely compare to the increase in eCommerce sales from 2019 to 2020, experts continue to foresee an overall upward trend for online retail, both in sales volumes and total market share.
According to a new Insider Intelligence analysis, Canadian eCommerce sales in 2022 are predicted to increase 11% over last year to an estimated $96 billion.
While it may seem contradictory, 2022 may be the year to explore establishing or increasing your company’s physical presence.
According to a Forrester Consulting poll conducted for Shopify in late 2021, 59 percent of customers engaged in webrooming or bought a product in-store after viewing it. In contrast, 54 percent of those polled admitted to showrooming, or buying an item online after seeing it in-store.
Keeping that in mind, it can’t be overstated how critical it is going to be for businesses to make sure that they have a robust and functional eCommerce store in place propelling forward, involving everything from having a watertight shipping strategy to picking the right eCommerce channel that accounts for eCommerce specific requirements.
Once the eCommerce infrastructure is solidified, business owners or entrepreneurs in Canada will reap a lot, ensuring staggering business growth.
The Key Takeaway
The eCommerce sector in Canada is gaining traction, signalling a promising future for the region’s eCommerce. Although Canadians prefer to purchase at Canadian merchants, the variety available on cross-border websites lures customers to these platforms. The future of eCommerce in Canada will rely heavily on superior purchasing experiences centred on personalization, simplicity, and a consistent, timely purchasing experience across all channels.
Over the next few years, eCommerce will become an increasingly important retail aspect. The epidemic favoured businesses with a strong internet presence, and the sector has learnt from its mistakes. As e-commerce grows and evolves, it will assist in maintaining retail for many years to come.
