B2C E-Commerce in Canada is dominated by US-based retailers, according to yStats.com’s new report
Germany-based secondary market research firm yStats.com has released a new report, “Canada B2C E-Commerce Market 2015”. Among other findings, the report reveals that B2C E-Commerce in Canada is dominated by US-based retailers. However, according to yStats.com’s CEO and Founder, Yücel Yelken, local Canadian retailers could be favored this year by weaker Canadian currency with respect to the US dollar.
In North America, Canada is overshadowed by the size of the neighboring US B2C E-Commerce market. But according to the latest forecasts, cited in yStats.com’s report, online retail in Canada is predicted to grow faster than the US 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 near future. 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, yStats.com’s research shows that the weaker Canadian dollar with respect to the US 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 US-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 US-based retailers such as BestBuy 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.