Canadian businesses are getting ready to take on eCommerce but the majority of them aren’t there yet. According to Statistics Canada, only 13% of Canadian companies sold goods and/or services online in 2013, totaling about $136 billion (up from $122 billion in 2012). 64% of those companies were larger enterprises, which sold about $87 billion in products or services online in 2013.
Small businesses are still poorly represented online, with only 47% having a website of any kind. 91% of large Canadian companies had a website in 2013. 19% of Canadian websites were optimized for mobile users.
It comes as no surprise that Canadian online sales were dominated by the retail, wholesale and manufacturing sectors, claiming 61% of eCommerce sales. With that considered, the fact that 64% of those sales were B2B (Business to Business) isn’t shocking either. Overall, 47% of all Canadian businesses purchased goods or services online in 2013. For those that did sell online in Canada, eCommerce accounted for a considerable chunk of their bottom line at 24%.
80% of online sales from Canadian businesses came from within Canada, demonstrating a significant consumer preference for shopping in their own country. American online purchases accounted for 15% of sales, and 5% internationally. With affordable shipping and a higher rate of online selling, Canadian eCommerce would be in a perfect position to bring in a much higher number of foreign dollars for the Canadian economy. What’s more, there’s still lots of room for Canadian businesses to gain a competitive advantage by being among the first businesses in this country to serve Canadian consumers online.
Social media has been increasingly recognized as an effective, economical way to market businesses online in Canada. 38% of businesses that had a website also had social media integration, up from 33% in 2012. The most common reason for using social media was to direct traffic to the website, with 41% saying traffic was their primary objective. Other forms of traffic generation included print (37%) and paid search (23%).
All indicators point to a major increase in Canadian eCommerce over the next couple of years. That means we’re a wide-open market for those who offer eCommerce-related products or services. Everything from software to consulting will be in great demand in Canada as enterprises embrace the Internet as a critical part of their sales and marketing strategy.
Source: Statistics Canada: Digital Technology and Internet Use, 2013 (June, 2014). Sample size: Approximately 17,000 private Canadian enterprises.
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Melody McKinnon is an internet entrepreneur with 25 years of experience in a wide range of online business models, backed by a formal business education and enhanced by training and mentorship. She has owned or managed both educational and ecommerce websites. Her book, 7 Recession Proof Online Businesses to Start From Home, is available from all major ebook retailers.
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Bill – biggest issue from experience is the cost of shipping and logistics here. Unless you are a really, really big online player your cost of shipping coast to coast is $17. In the States, that’d be half that at least.
Logistics wise, there are very few fulfillment companies out there and the one’s that are out (at least in BC) are expensive. I can get an order picked & packed in the US for $2.50 (all in). Here, it starts at $3.50 and goes up per additional item – so averaging around $5. Add those two together and your cost of operating an e-commerce business is significantly higher, making online deals much less than in the US.
Not all products are suitable for ecommerce but I would have guessed we were doing better than that overall. Wonder what the hold up is?
Canada will explode onto the scene in good time, but why not right now…
Pretty good looking stats really for Canada.
Great information & insights! So many cover stats can releases but they don’t really analyze them or make suggestions. Like that about you.