Consumers, as well as small and medium sized businesses in Canada have shown a reluctance to engage in ecommerce and online shopping. This is an odd outcome given their high degree of digital connectedness—78.1% of households in Canada have fixed broadband as of 2013. The reality is that slow ecommerce adoption is less about consumer interest in buying online, which is strong, and more to do with the poor online shopping experiences retailers offer, according to a new eMarketer report, “Canada Ecommerce: Startups Pressure Established Players to Innovate.”
But Canada is poised to see significant gains in retail ecommerce sales.Estimates show that sales will jump nearly 18% to hit CA$21.61 billion in 2013 and will experience further double-digit annual growth rates through 2017.
Driving this strong growth is an inventive breed of ecommerce vendors that has transformed online shopping into more than a digital transaction, enabling product research, price comparison and loyalty rewards. Shopping options were scarce during the first generation of ecommerce development in Canada, but that is changing, with smaller firms and startups providing a creative boost to the market.
Canada compared with US
In 2012, U.S. e-commerce sales amounted to $225.5 billion and are projected to grow to in excess $400 billion by 2017.
Online consumer spending grew 14% in 2013, according to most recent data. For comparison, total consumer retail spending in the U.S. grew by mere single-digits. Although the majority of e-commerce spending still occurs on PCs, mobile ecommerce’s share is growing significantly faster. These findings support data we’ve analyzed from the U.S. Census and other sources.
Although most online purchases still occur via PCs, experts and leading analysts believed that mobile commerce will be among the industries most affected by the rise of mobile gadgets,such as tablets including convertible notebooks, 4 and 5G enabled smartphones. Global e-commerce sales made via mobile devices are expected to top $638 billion in 2018, according to a forecast from Goldman Sachs. For perspective, that was roughly the entire size of the world’s e-commerce market in 2013. Goldman Sachs predicts that tablets, not smartphones, will be the primary drivers of mobile commerce growth.
Are existing payment solutions suitable for Canadian Businesses?
Recently we’ve seen a big improvement in the small and medium-sized business space in ecommerce in Canada.
What has allowed smaller ecommerce players to be competitive is the availability of software tools enabling easier ecommerce.
Off-the-shelf payment solutions have lowered the barrier to ecommerce entry significantly and enabled more competition from ecommerce startups. Buoyed by this liberation, new players are demonstrating how best to capture online purchaser attention.
Payment solution provider – an alternative
For this reason many Canadian businesses are increasingly turning to payment solution providers such as CDKPay. Because we specialize in Payment processing, we are in a stronger position to assess the level of risk involved in a merchant’s business and how it can be mitigated. Our recommendation tends to be respected by our banking partners, who are more willing to open merchant accounts for businesses.
Regardless of location, online commerce is growing faster than brick and mortar sales.
It is time you reach out to CDKPay to see how we can help you today.