BuyingInternet shopping by type of online order
Buying1. More and more Canadians from all demographics are shopping online According to Statistics Canada, Canadians used the Internet in 2009 to place orders for goods and services valued at $15.1 billion, up from $12.8 billion in 2007. In 2009, about 39% of Canadians aged 16 and over used the Internet to place more than 95 million orders. This was up from 32% and the 70 million orders placed in 2007, when the survey was last conducted. The increase resulted from more online shoppers and a higher volume of orders.
Buying2. Online shopping in Canada is expected to continue to grow eMarketer estimates consumers in Canada spent $16.5 CAD billion ($16.0 billion) in 2010 on both domestic and foreign sites for products and services (including travel). By 2015, that amount will nearly double to $30.9 CAD billion ($30.0 billion).
Buying3. Online sales continue to grow faster than brick-and- mortar sales. B2C eCommerce will enjoy a compound annual growth rate (CAGR) of 10.6% according to eMarketer’s projections, and US retailers are well aware of the opportunity and are moving fast.
Buying4. Statistic Canada research shows online stores complement brick and mortar stores In 2009, 52% of Canadians went online to “window shop,” that is, to research or browse products, up from 43% in 2007. Among all window shoppers in 2009, 69% reported subsequently making a purchase directly from a store, up from 64% in 2007. The Internet complements traditional retail for certain categories such as consumer electronics (cameras and DVD players), appliances and furniture, as well as clothing, jewellery and accessories.
Buying5. Big American retailers are successfully entering the online market in Canada even with higher shipping costs passed on to the customer Fuelled by the recession in the states more and more American companies are now successfully selling their products in Canada further providing evidence that there is room in the Canadian online market place for new retailers. Canadian retailers should act now to carve out their space in the online market space as more and more American retailers offer their products in Canada
Buying6. Canadians would rather spend at Canadian retailers Despite the American competition, a study released in 2012 by American Express, says that Canadians are not only looking for value in terms of price and quality of a product, but also value in the more personal sense, whether that includes considerations like eco- friendly products, ethically-produced items, or products manufactured or sold from within the country
Buying7. Having an online store allows your brand to extend its reach We live in a wide country and it is impossible to reach Canada’s entire potential market through brick and mortar stores. Offering shipping anywhere in Canada allows Canadian customers anywhere to become acquainted with your brand and purchase your products.
Buying8. eCommerce allows businesses to generate revenue through their website and measure online marketing ROI Without an eCommerce capable website it is difficult to measure whether your website and online marketing tactics are creating any type of financial return. Using marketing tactics to drive traffic to an eCommerce website allows you to measure which tactics are the most effective in generating online sales.
BuyingWho is buying online ? 51% of Canadians 16-34 purchase online 42% are men 37% women 70% window shop online 69% of window shoppers report making a purchasefrom a store Security concerns decline as Internet use increases
SellingCanadians need to be competitive, but there are other ways we can win onlinesales:Ask yourself how you can help rather than how you can sell.Give shoppers a reason to purchase from you, with a focus on uniquemerchandise, Canadian products, selection, competitive pricing & coupons.Offer gift cards or digital certificates.Offer free or flat-rate shipping. Remind shoppers that shopping in Canadameans faster arrival of shipments and no surprise duty, tax or brokerage feeswhen the item arrives.Facilitate purchasing with secure, smooth transactions, and a mobile-friendlywebsite.Get out there and network with shoppers through blogging and socialmedia. Establish your brand on the latest social networks like Pinterest andfind creative ways to subtly promote your products. Compared to other socialnetworks, Pinterest referrals are 10% more likely to complete an onlinepurchase, according to Mashable.com.
Selling - Setting up storehttp://www.shopify.com/
Selling - Setting up storehttp://www.woothemes.com/woocommerce/
SellingThings to consider when creating your store• Type of products/services •Color, size, qty, number of nights, etc.• Easy to manage the store and track orders• Shipping• Charging appropriate taxes• Inventory• Promotion and customer loyalty •Coupons •Repeat customer •Online advertisinghttp://www.zappos.com/
Choosing an e-commercesolution for your website•How many products do you want to sell? Does the solution have sufficient capacity tohandle your products?•Does the solution provide room for growth (i.e. growth in number of products, sales)?•Do you already have a website that you are satisfied with? If so, you may want toconsider software/applications that are compatible with your present hostingenvironment. You can also check to see what your present host offers in terms of e-commerce packages. Make sure that the software package you choose is compatible withyour present hosting environment.•Is the solution compatible with other applications? (e.g. payment processing options,payment gateway, orders, inventory, accounting, shipping).
Choosing an e-commercesolution for your website•If choosing a template option, are there a sufficient variety of templates and designs tochoose from?•Can you easily import/export (i.e. transfer) data? If you have an existing productcatalogue will it be easy to integrate into the new software? If you change hosts can youexport your data without having to manually re-enter all your information?•How easy will it be for you to update and change the website and product catalogue?•Have you looked at various software products? You can browse e-commerce websitesto assess products and features. Service providers usually provide a trial period to test thesoftware. Consider the look of the online store, how easy is it to find products, and howeasy is it to make a purchase.
Choosing an e-commercesolution for your website•Do you need an automated sales tax and shipping cost calculation feature (depends onthe extent of your e-business and your customer base)? You may need a solution thatallows you to outline detailed shipping costs, particularly if you have internationalcustomers.Does the solution support a sufficient range of payment options?•Are tracking tools such as Google Analytics easy to integrate into the solution?•What level of technical support do you need? What level of technical support is beingprovided?
Choosing an e-commercesolution for your website•Is the hosting company or e-business provider behind the e-commerce packagereputable? How long have they been in business? What work have they done in the past?Have you checked their work and references? Is the technical support provided directlyby the company or do they outsource?•If you are thinking of an open source solution - Is it compatible with your hostingenvironment and other software? Is the product well established? Can an e-businessprovider easily modify it to meet your needs?
Receiving paymentsMerchant accountsAn Internet Merchant Account is an account issued by a financial institutionthat enables a business to accept credit card payments online. Businesses mustobtain a separate Internet Merchant Account for each type of creditcard they wish to accept (e.g. VISA, Mastercard, American Express).Merchant account fee structures include onetime fees, monthly fees andtransaction fees. The merchant account provider should clearly outline the feestructure. Review any additional fees carefully and make sure you include all setup fees when doing comparison shopping.http://www.onlinemart.ca/EN/PaymentServicesPricing.asp
Receiving paymentsManual Credit Card processingYou can set up an e-commerce website where users can order online, but youprocess credit cards manually rather than rely on online payment processingoptions. With this option, credit card information can be obtained through asecure server and the transaction can be processed manually. This option isfeasible when you have a limited number of online orders.