Status of Canadian eCommerce
Despite a significant disruption in retail outlets, Canadians have embraced electronic commerce. Over 27 million Canadians used eCommerce in 2022, making over 75% of the country’s population. E-commerce sales were estimated to be around $2.34 billion in March 2022. By 2025, it is predicted that retail eCommerce sales would reach $40.3 billion USD. The top three product categories right now are electronics, fashion, and furniture. When making purchases online, 59% of Canadian customers utilize credit cards, and another 20% use PayPal. By 2025, it is predicted that 27% of online payments will be made via digital wallets, which are growing rapidly.
Market entry Opportunities.
Most of the companies and retailers tend to look Canadian Market as the natural transition from the United States due to the common language, cross-border shopping, TV, and advertising.
But, this reality is not precisely accurate. Canadians as opposed to Americans tend to seek value in shoppers, quality, or prices rather than a particular brand.
Nowadays, to ensure the success in the Canadian market, it is necessary to focus on Sustainability. According to the most recent EY Future Consumer Index, an overwhelming majority of consumers (68%) are looking to companies (manufacturers and retailers) to drive the sustainable agenda, with the targets on reducing green house gas emissions and waste generated during production. Organic and ethically sourced products are in great advantage considering these trends.
Such is the case of Juan Valdez, that in 2022 started operations in Canada with its line of 100% natural coffee through UniMarket. Juan Valdez does not have plans to open a physical store yet, but its products are distributed to over 170 clients like restaurants, hotels, supermarkets and small retailers. The Canadian Market is an interesting market where the brand is not as important as the quality in the product, service offered, price and the experience, always with the aim of sustainability.