Executive Briefings

Weaker Canadian Currency Could Help Domestic Merchants Regain Business From U.S. E-Commerce Giants

B2C e-commerce in Canada is dominated by U.S.-based retailers, according to a report from Research and Markets. However, local Canadian retailers could be favored this year by weaker Canadian currency with respect to the U.S. dollar.

In North America, Canada is overshadowed by the size of the neighboring U.S. B2C e-commerce market. But, according to the latest forecasts, online retail in Canada is predicted to grow faster than the U.S. market in the next several years. Canada ranks in the top ten B2C e-commerce markets worldwide in terms of sales and is praised for its advanced infrastructure and consumer behavior. Rising online shopper penetration and spending, mobile commerce development and improved local offerings are expected to be the main growth drivers in Canada in the next few years.

M-commerce sales generated on smartphones and tablets are predicted to account for over half of total B2C e-commerce in Canada in the near future, according to the report, Canada B2C E-Commerce Market 2015. Omnichannel is also gaining pace, as consumers cross the online and offline channels to find the best offering. Another important attribute of B2C e-commerce in Canada is cross-border online shopping. In 2014, more than half of online shoppers in the country purchased cross-border due to lower prices and better product selection. However, the report shows that the weaker Canadian dollar with respect to the U.S. dollar could moderate the cross-border trend. As of mid-2015, more than half of consumers in Canada believed that cross-border shopping from the USA, whether online or in-store, has become a costlier option.

The leading B2C e-commerce players in Canada over the past years have been U.S.-based merchants. Of them, the largest in 2014 was Amazon, with its Amazon.com and Amazon.ca online shops. Also this year, Amazon's websites rank the highest among online retail websites in Canada, followed by eBay's marketplaces and other U.S.-based retailers such as Best Buy and Wal-Mart. Furthermore, Chinese marketplaces, including Alibaba Group's Aliexpress.com and Alibaba.com websites, also appear in the top 10 most popular e-commerce websites.

Source: Research and Markets

In North America, Canada is overshadowed by the size of the neighboring U.S. B2C e-commerce market. But, according to the latest forecasts, online retail in Canada is predicted to grow faster than the U.S. market in the next several years. Canada ranks in the top ten B2C e-commerce markets worldwide in terms of sales and is praised for its advanced infrastructure and consumer behavior. Rising online shopper penetration and spending, mobile commerce development and improved local offerings are expected to be the main growth drivers in Canada in the next few years.

M-commerce sales generated on smartphones and tablets are predicted to account for over half of total B2C e-commerce in Canada in the near future, according to the report, Canada B2C E-Commerce Market 2015. Omnichannel is also gaining pace, as consumers cross the online and offline channels to find the best offering. Another important attribute of B2C e-commerce in Canada is cross-border online shopping. In 2014, more than half of online shoppers in the country purchased cross-border due to lower prices and better product selection. However, the report shows that the weaker Canadian dollar with respect to the U.S. dollar could moderate the cross-border trend. As of mid-2015, more than half of consumers in Canada believed that cross-border shopping from the USA, whether online or in-store, has become a costlier option.

The leading B2C e-commerce players in Canada over the past years have been U.S.-based merchants. Of them, the largest in 2014 was Amazon, with its Amazon.com and Amazon.ca online shops. Also this year, Amazon's websites rank the highest among online retail websites in Canada, followed by eBay's marketplaces and other U.S.-based retailers such as Best Buy and Wal-Mart. Furthermore, Chinese marketplaces, including Alibaba Group's Aliexpress.com and Alibaba.com websites, also appear in the top 10 most popular e-commerce websites.

Source: Research and Markets