Canada is among the largest economies in the world with its GDP ranked among the top ten globally. The mixed economy has grown over the years with its three main contributors consisting of the manufacturing, service industry and natural resource. Apart from these significant contributors, there are other industries that are also growing and giving back to the economy in a big way. The retail industry is one such sector which is being driven by the growth of digital technology resulting in the growth of e-commerce sites. These sites are set up by established and new brands making it a sector worth keeping an eye on in Canada.
Facts on online retail sales in Canada
Online retail sales in Canada has changed over the years with many residents making purchases over the internet resulting in a booming e-commerce market. It is safe to say that the majority of Canadians consider shopping online whenever they need a service or product. Some areas in which changes have taken place within the online retail industry in Canada are highlighted below.
Growth in the percentage of sales
In the last decade, e-commerce in Canada has grown in leaps and bounds with the number of people purchasing services and products online increasing tremendously. As of 2018, the retail sales using e-commerce had made a twenty-six percent jump when compared to the previous year. The nine percent increase in total sales is only the start as the numbers are set to hit the 55 billion dollar mark by 2023.
Popular shopping categories
Although most Canadians shop across the board, some categories have proven to be popular with residents buying goods and services online. These categories include household goods, fashion, and travel which are purchased regularly. Most Canadians find purchasing these items or services online much more convenient and reasonably priced. Getting your products delivered to your home after selecting them on comparison sites such as bestreviews.guide is another reason for the increase in online shopping.
Increased confidence in online payments
Making online payments has been slowly embraced by Canadians interested in buying from various online platforms. The uptake of digital purchases online is much slower than other developed countries, and this is because Canadians are not yet comfortable sharing their financial information online. Nevertheless, their hesitation has not slowed down the use of non-traditional payment methods to acquire items online. Some of the ways in which payments are made in Canada include credit cards, PayPal and mobile wallets whose use is set to increase in the next few years.
Expansion of the e-commerce industry
As the percentage of retail sales in Canada increase, so do the number of businesses that are entering the market. Many people are launching online businesses in the country with the focus being on offering products and services that residents need. The setting up of a virtual storefront on an e-commerce site is also much more affordable than starting in a brick and mortar store. It is expected that businesses in Canada within the e-commerce space will be much higher in the next five years.
Future of Online Retail Sales in Canada
The growth of retail sales in e-commerce outlets in Canada is on the rise with the majority of players in the industry expecting to reap big in the coming years. If you are considering trying your luck in this space, you need to understand the projected growth so that you can position yourself or your company strategically. Some of the things look out for in the online retail space in Canada in the next five years are listed below.
Better shopping experience
Even as shopping on online platforms continues to rise in Canada, there is expected to be an improvement in the experience offered to customers that shop over the internet. Currently, the focus has been on building websites that work well from start to finish with the aesthetics taking the back seat. However, this is bound to change rapidly in the next few years with online shopping going beyond the norm and the focus switching to creating memorable experiences for clients. Making changes where necessary will be the best way to remain relevant to new and returning customers.
Growth in cryptocurrency as payment
In Canada, payments for online services or products is done using cash after delivery, credit cards and various online payment systems. Most online stores accept these payment systems are accepted for the benefit of clients. However, in the future e-commerce sites will also have to accept cryptocurrency such as bitcoins as payment for the goods or services being sold. It will be essential to understand the implication of these new types of currencies and plan accordingly at all times. Additionally, the use of cryptocurrencies will take time to be implemented across Canadian e-commerce sites, thereby requiring a balance of traditional, non-traditional and new age types.
Greater exploration of e-commerce capabilities
Even as the e-commerce platform in Canada is set to expand so will the interest in the workings behind the websites. It is likely to see more Canadians learning as much as possible about buying items online so that they can enjoy the benefits that it offers. Additionally, business owners selling on the site will explore beneficial aspects of e-commerce and include them as part of the services provided to clients. No matter which side you are leaning towards, a player in the industry or client, it will be important to learn as much as possible about the Canadian retail sales industry to remain relevant on various online e-commerce platforms.
Ultimately, retail sales in Canada for goods and services sold online is set to increase gradually over the years if the current situation is anything to go by. The sites that are available in the country offer a wide array of items that appeal to the customer base in the country. Also, e-commerce sites are likely to record an increase in customers which translates to a higher percentage in retail sales in the coming years.