1. GROW YOUR BUSINESS IN CANADA VOLUME 1: ISSUE 2
Look inside to find out
about the Canadian
opportunity and how
you can get your
share of it!
DM ❤ E-COMMERCE
How this unlikely duo can
produce winning results.
CLICK & SHIP
Delivering a better customer experience.
LOOKING FOR LOVE ONLINE
Why the Canadian consumer
is the perfect match for you.

2. 32
THE KEY TO
E-COMMERCE
SUCCESS IN
CANADA
Go North is published by Canada Post.
Director, Enterprise Marketing: Donna Reid
Editor: Robert Symes
Proofreading: RobertWarner
Layout and Design: MediaplusAdvertising
Grow you business today!Visit:
CANADAPOST.CA/GONORTH
Contents Copyright 2014 by Canada Post; may not be
reprinted without permission.
W
elcome to Go North, a magazine
about growing your business north
of the border, brought to you by
Canada Post Group of Companies, Canada’s
largest mail & parcel delivery network and
logistics organization.
Canadians are avid shoppers – online and off. Opportunity resides
at your doorstep. As the nation’s leading e-commerce parcel delivery
service, Canada Post’s data and research can provide powerful insights
into how Canadians behave and shop in a digital world, as well as
the marketing channels that drive them online. We also provide a
delivery experience that keeps customers returning for more. In this
issue we’ll share some of those insights with you.
In Canada, e-commerce growth continues to outstrip expectations.
Our own parcel data shows year-over-year growth of roughly 30% in
major retail verticals such as fashion & apparel and health & beauty,
and identifies hotbeds of growth all within reach of the border. Our
research shows what Canadians buy online, how much they spend,
as well as how often they buy. We even know what their expectations
are after they check out. Read about our online shopping lives in
’Looking for Love Online’ (Page 4), then discover what Canadians
seek in shipping and delivery in ’Click and Ship’ (Page 6).
We also know that advertising mail can play a key role in any
e-commerce strategy. To some, the idea of using advertising mail to
promote online sales seems an unlikely fit. If customers are online,
isn’t that where you should be marketing to them? In this issue of
Go North, we’re not only dispelling that myth – we’re going to show
you how the mail is the perfect channel for boosting online sales. In
’DM Loves e-Commerce’ (Page 8), we’ll provide the best practices
that will result in effective, money-making campaigns..
I’m confident this magazine will introduce you to the magic of
possibility while educating you about the opportunities that await
in Canada. When you’re ready, let us help you achieve e-commerce
success north of your border.
Serge Pitre,
Vice-President, Sales
Canada Post
32,800,000,000 The size of the
Canadian e-commerce market in dollars. The
2012 value was C$22.3 billion.
35,158,300 Number of Canadians –
a larger population than every US state and
dependency other than California.
43,146 Canada’s GDP per capita in
dollars – 9th amongst all the world’s nations.
72 The percentage of Canadians buying
from international sites who cited a lack of
products domestically as a major driver.
42 The percentage of Canadian online
shoppers who buy internationally to obtain
a better price.
39 The percentage of Canadians who
made an online purchase over a six month
period after receiving an ad in the mail.
Beating out online advertising and email by
a significant margin.
4 Toronto’s population ranking amongst
North America’s biggest cities, behind only
Mexico City, New York and LA.
Sources: Canadian eShopper Experience, Canada Post Study 12-209. 2012; ‘The
State of Canadian Retail’, Forrester Research 2013: CPC #12-220 DM Omnibus;
Statistics Canada

3. 5
As the market share leader in B2C shipping, Canada Post can provide
a valuable perspective on e-commerce. Our parcel data reveals the
hottest growth areas in online retail. We have conducted extensive
research into ecommerce and can provide a comprehensive overview
of the Canadian online shopper.
We tell you that, broadly speaking, Canadians have embraced
online shopping with gusto:
the past three months;
It should come as no shock that young people (ages 18–24) appear
to have embraced online shopping; but the most recent buyers
are dominated by the 25-35 age group, many with a college or
university education and healthy household income. Essentially, the
Canadian online audience holds great potential for sales, fitting
the age group, education and income levels long considered in the
sweet spot for marketers.
When it comes to gender, stereotypes paint women as shopping
leaders, but our research shows that online shopping is split equally
between men and women. Some areas, such as fashion and apparel,
for example, is dominated by female consumers, but men are active
online shoppers. As a country with two official languages, 82%
of shoppers said that their first language is English with French
French, showing more of a skew to English among online shoppers.
American retailers may be a little concerned that one in every five
online shoppers are French-speaking, but read on to see why that
may actually work to your favour.
So what are these people buying online? Canadian category
purchases follow a similar pattern to those of Americans. For
buyers, the most recently purchased category was apparel (18%),
books, music and movies (16%), health & beauty products (9%)
and consumer electronics (9%). When looking at all purchases
within a three-month period, more than one-third of shoppers
made purchases of apparel products, with the same number buying
books, music or movies. Health & beauty and consumer electronic
purchases round out the top four, with a quarter of buyers making
a purchase in each of these categories over a three-month period.
Sixty-six per cent of recent buyers had one or more of their recent
purchases shipped from outside of Canada, and 43% of them
purchased from the U.S.
Canada Post research shows that forty-two per cent of those who
purchase outside of Canada do so because of price. Almost half
of all international purchasers said they saved more than 20% on
Canadian prices, even when all shipping, taxes, customs and duties
were factored in. Price was particularly important to French-speaking
consumers, (54% listed cheaper prices as their main reason for
doing so). This should be welcome news to American retailers who
fear language may act as a barrier. Canada is a bilingual nation,
and English is widely understood in Quebec. While a best practice
would be to offer a site and services in French, data shows that
US businesses shouldn’t be discouraged from offering products in
the province if they can’t provide this. Quebec remains a relatively
untapped market for American retailers, and Quebec shoppers
demonstrate high interest in numerous areas of retail.
Product range is the second most important driver for online
shoppers. Thirty-seven per cent of people who purchased outside
of Canada cited brand availability as their reason for doing so —
in many cases the product was simply not available for purchase
domestically. A further 19% said that their main reason was greater
product selection. In some key categories, the Canadian retail
landscape offers less product selection. Canadian online shoppers
demand variety and choice and have demonstrated a willingness
to buy internationally.
Nearly three-quarters of Canadian online shoppers were completely
satisfied with their most recent purchase. That leaves more than
25 per cent with misgivings about online shopping outside of
Canada – an area where retailers can make ground. For insights
into how to stack the deck in you favour, read ‘‘Click and Ship’,
which follows this article (Page 6).
Advertising can certainly give your company visibility. There’s
good news here, too. Research shows Canadians are receptive to
promotion across a range of media. Canadians want to know about
deals on books, movies and music (31%), consumer electronics
the Top 5. The same channels that appeal to Americans work with
Canadians, though studies have shown a continued preference for
advertising through the mail.
American retailers know of the power of catalogues, but our
research shows that penetration in Canada remains low. Opportunity
to reach consumers in an uncluttered environment awaits. Less
than 50% of Canadians have received catalogues in the past
12 months from retail sectors such as apparel and tourism. This
presents an opportunity because almost half of all Canadians will
retain a catalogue for later reading, and catalogues drive 38% to
and 12% to purchase by mail or phone.
These are just a few of the insights gleaned from our research into
online behaviours. They demonstrate that Canadian consumers are
sophisticated spenders and represent a sweet spot for sales growth.
As the preferred shipper of online Canadians, and as a company
that can deliver your advertising message to every community in the
country, Canada Post can help you access the Canadian market. Find
out more by visiting us today at www.canadapost.ca/gonorth
As the market share leader in
B2C shipping, Canada Post can
provide a valuable perspective
on e-commerce.
Source: Canadian eShopper Experience, Canada Post Study 12-209, 2012.
4
WHY THE
CANADIAN
CONSUMER IS
THE PERFECT
MATCH
FOR YOU
T
he Canadian retail landscape
is constantly shifting in our
increasingly digital world.
Online sales continue to outstrip
forecasts, making it vitally important
for companies to understand online
habits and purchasing behaviours
of consumers. When the prize is as
large as the Canadian e-commerce
market – predicted by eMarketer
to hit $34.8 billion by 2016 – the
idea that “knowledge is power”
has never been more relevant.
Looking for
LoveOnline

4. Returns
Our research shows that 23% of Canadian online buyers returned a
recent purchase or wanted to but didn’t. Looking at the consumer
universe, we estimate that 12% of all orders are returned. You might
wonder what value there is in keeping these customers happy if they
return a good proportion of their orders. The reason: They tend to
be high spenders. On average, returners spend 25% more over a
three-month period than those who don’t return. The importance of
keeping these customers happy suddenly becomes a lot clearer. We
also know that a good returns experience increases the likelihood
that a customer will feel confident with future online purchases.
The cardinal rule is to make it easy for the online shopper. One-third
of Canadians who returned a purchase did so using a pre-printed
returned a product via mail or courier, using a label they obtained
online or by paying out of pocket. More than half of those surveyed
strongly agreed that including a return label in the original delivery
made returns more convenient. Your company should either include
an option for return in the original purchase or make it extremely
accessible through your online channel. It also helps if the channel
of return is close at hand.
Transparency up front is also highly valued – the JC Williams study
showed that more than 50% of Canadian e-shoppers agreed that a
clearly stated returns policy made for a better experience. Remove
any potential misgiving and secure a checkout by setting yourself in
a class above all retailers. Your return policy should let buyers know
that they can be 100% confident they can easily return or exchange
their purchase.
Best Practice:Enable quick and easy returns through pre-printing
return labels with your original shipment. Adopt and communicate
a clear returns policy.
Shipping Speed
Car ads tout speed as a selling asset, but online retailers know
that consumers are willing to sacrifice speed for cost. Our research
of Canadian shoppers shows that 82% of recent online buyers
of a shipped product chose regular shipping, with only 12%
using expedited. Does this mean that speed doesn’t matter
to Canadians? Speed matters, but data tells us that Canadian
shoppers seek cost-effective delivery as an important option
alongside faster modes of delivery.
Best Practice: Provide choice – both cost-effective and expedited.
Delivery Location
Eighty-three per cent of recent online buyers with a shipment had
their most recent online purchase delivered to their home, and more
than two-thirds reported having someone at home at the time of the
delivery. The pain point for retailers occurs when consumers are not at
home. A missed delivery could result in a lengthy trip across town to a
depot, which produces an inferior customer experience and hampers
the likelihood of a repeat sale. The answer is to provide convenience
and easy access. One-third of shoppers stated that if they are not
expecting to be home during a delivery, their preferred option is for
the shipper to arrange delivery to their closest post office. A further
23% preferred a card be left explaining where to pick it up (which
again can include a post office). Only 18% preferred the option of
leaving the package at the door – possibly due to concerns about theft.
Best Practice: Provide convenience – give your customers the
option for home delivery or to a local convenient location (and with
roughly 6,300 post offices we can help).
To understand how Canada Post can provide best-in-class delivery
and returns options for your customers visit canadapost.ca/gonorth
Canadian online shoppers are well versed in the risks and
downsides of making purchases across the border. They know
the rules of the game and are prepared to go to great lengths
to secure the product they want.
6
DELIVERING A BETTER
CUSTOMER EXPERIENCE
Click&Ship
T
his article explores best practices for
providing Canadian customers with a
superlative shipping experience.
Research company JC Williams identified the factors that Canadians
value most in online buying. As expected, free or discounted shipping
and ease of checkout were the top priorities, but a number of other
areas ranked very highly, including hidden costs, returns policies,
shipping speeds and flexibility of delivery.
Fees
Price is one of the most common determining factors in choosing to
make a purchase, so shipping costs are critical. Major non-shipper
costs associated with international purchases matter, too. For most
retailers, this means the border and the duties, customs and brokerage
fees that accompany it.
Dealing with an international border may lead to second thoughts,
but evidence shows that opportunities far outweigh the concerns.
Canadians are adept and enthusiastic international shoppers. A 2013
Forrester study on Canadian Online Retail concluded: “Canadian
online shoppers are well versed in the risks and downsides of
making purchases across the border. They know the rules of the
game and are prepared to go to great lengths to secure the product
they want.” Essentially, there’s a receptive market on America’s
doorstep. Gaining access to it makes good business sense. It’s time
to make your company accessible.
To make it easier for Canadian consumers, we recommend that
potential fees are incorporated into the pricing when the customer
pays for the order, to avoid surprises upon delivery.
Best Practice: Incorporate all potential fees into the up-front
pricing structure.
Source: Canadian eShopper Experience,
Canada Post Study 12-209, 2012.

5. 9
W
hat happens when the oldest form
of marketing meets the newest
wave of retail? How about a
better return on investment. Direct Mail and
e-commerce may seem like uncomfortable
bedfellows, but marketers are realizing that
these opposites attract.
The affinity between Direct Mail and e-commerce is supported by
statistics. According to recent research study by Canada Post, ads that
arrive in the mailbox are the most effective channel for stimulating
purchases online: over a six-month period, 39% of Canadians made
an online purchase as a result of receiving an ad in the mail. Email
and online ads tied for second place. Even social media, the current
darling of the marketing world, can only muster 8%. The same 2013
company website as a result of something they received in the mail.
The ability of offline media to drive online traffic may seem
counterintuitive. When consumers are online, few things could be
easier than clicking a banner ad that can immediately drive traffic to
a website. But click-through rates often disappoint and people have
developed an uncanny ability to filter out online advertising as “noise.”
A proliferation of channels competes for attention. We are inundated
daily with marketing messages through email, banner ads, TV
commercials, radio, newspapers, magazines and billboards. Direct
Mail reaches consumers in their homes and businesses, where they
are more likely to read it, and stands out from the din. Amid the noise
and haste, Direct Mail offers a reprieve and affords the consumer
time to absorb the message. Perhaps that’s why it is such a powerful
driver of action.
The 2012 Direct Marketing Association response rate report showed
Direct Mail generates a response rate that is 30 times greater than
email. Not only are the response rates higher, they result in purchases
with great frequency. Not only does Direct Mail outperform other
marketing channels on response, but it lifts their effectiveness when
used in partnership with them. Multi-channel campaigns are proven
to deliver wider overall awareness of your business and increase the
likelihood of a consumer response through every channel. Search
engine marketing (SEM) on its own may pick up people searching for
solutions online, but Direct Mail can raise awareness of a need, and
your company, and result in better SEM campaign results.
Of course, there is no guarantee Direct Mail will increase online
sales. Like any marketing campaign, success requires a sound plan,
effective execution, a commitment to track results and willingness
to adapt and respond.
Here’s how the traditional components of marketing success apply
to e-commerce retailing:
Targeting
The beauty of Direct Mail is its ability to target a particular audience.
You may already have valuable information about your customers that
allows you to send relevant communications when and where they
need and want them. Data and list options have made e-commerce
mail prospecting highly effective. Demographic and lifestyle data can
map neighbourhoods where ideal targets live, while lists can identify
the neighbourhoods with frequent online shoppers.
Offer
The offer should drive people to your website. The call to action
must motivate consumers to visit your site. Discounts, giveaways
and contests can all be effective. Add value by offering access to
content, such as videos, newsletters, or other resources – whether
shoppers buy a product, or not. Above all, include your website or
marketing URL on your Direct Mail piece. If customers have to spend
time searching for you online, you risk losing them.
Creative
Direct Mail provides an excellent branding opportunity. Communicate
what your business represents. Provide consumers with an interactive,
full-on sensory experience, then watch brand engagement and recall
soar. Canada Post research shows that 53% of Canadians remember
a mail piece two weeks after receiving it.
Find out how Direct Mail can grow your business in Canada.
Visit www.canadapost.ca/gonorth
8
Canada Post, Direct Mail Omnibus, CPC# 12-220, January 2013.
39% of Canadians made an
online purchase after receiving
an ad in the mail.
HOW THIS
UNLIKELY DUO
CAN PRODUCE
WINNING RESULTS
Sources: Canadian eShopper Experience, Canada Post Study 12-209, 2012; DMA
Response Rate Report, Direct Marketing Association, 2012. CPC# 12-220 DM Omnibus

6. 10 11
I
n this magazine we provide insights into
how Canadians behave and buy online. We
demonstrate that there is a highly lucrative
and largely untapped marketplace on your
doorstep. Wondering how can you access this
opportunity to grow your business? Look no
further than Canada Post.
Who Are We?
If you are doing business in Canada, we are your natural partner.
since then, we’ve been trusted by companies to keep the wheels
of business moving. Our strength lies in our diversity – whether you
require marketing help, extensive shipping options, or e-commerce
integration, we have the answer to your needs. Many of America’s
biggest and best companies use our services every day. We have the
expertise and tools to help you navigate the border seamlessly and
establish a highly profitable customer base in Canada.
How can we help?
Delivery
In shipping and e-commerce, Canada Post is an industry leader, with
a range of delivery options that provide the utmost in consumer
convenience.
Our success is based on the same grounds that produce positive
business results – a superior customer experience. Every delivery is
a special delivery for us. No one else delivers more B2C parcels to
Canadians than we do. Canadian online shoppers identified Canada
Post as their preferred shipper for a reason.
When you work with us, you’re working with a company that has
more pick-up and drop-off locations coast-to-coast than all other
providers combined. We have the largest retail network in Canada
and if our agents cannot complete a delivery, it can be rerouted to one
of our 6,300 locations. A network as extensive as ours lends itself to
customer service. Rarely do you have to travel far to pick up parcels
or packets. Our network also provides best-in-class return solutions,
providing online shoppers with convenient drop-off points for returns.
We also offer a means to deliver parcels to a post office of choice,
one that is most convenient for the consumer. This, and community
mailboxes, allow easy pick-up if a consumer knows they will not be
at home during regular delivery hours.
Finally, our suite of user-friendly tracking services improve your
customers’ online shopping experience by providing them with end-
to-end visibility. Allow customers to see each stage of the shipping
process and follow their package as it enters Canada from sorting
through to delivery.
Marketing
As Canada’s Direct Mail experts, we can connect you with consumers,
targeting those most likely to read it – in their homes and where they
work – and those most likely to respond. Direct Mail with Canada
Post offers two distinct, but rewarding solutions – Unaddressed and
Addressed Admail™
.
Unaddressed Admail™
can most closely be compared to USPS’
Every Door Direct offering. It allows businesses to target all mailable
addresses in a given area, an ideal prospecting tool to drive customers
to new locations, or a branding tool. To use Unaddressed Admail,
all you need is an idea of where you want to market and an ideal
profile of who you want to target – no addresses or lists are required
to execute your mailing.
Addressed Admail will be more familiar to American Direct Marketers.
Through an internal database or list, businesses can target customers
with precision. With Canada’s most complete, up-to-date and accurate
mailing lists, we can help you identify your target addresses in advance.
The diversity of our lists ensures we have one tailored to your needs –
from targeting Canadian businesses to identifying people most likely
to buy online, and just about everything in-between.
Find out how we can help you grow your business in Canada. Contact
us today at gonorth@canadapost.ca,or visit our companies online at
canadapost.ca/gonorth
The KeystoCanadaOur strength lies in our diversity – whether you require
marketing help, extensive shipping options, or ecommerce
integration, we have the answer to your needs.
HOW CANADA POST
CAN HELP YOU SUCCEED

7. WHEN CANADIANS ADD TO CART,
GET IT THERE WITH A COMPANY THAT
KNOWS CANADA.
As Canada’s national mail and parcel delivery service, Canada Post is trusted to deliver
more parcels to more Canadians than anyone else. And with over 6,300 locations across
our country, no one else lives as close to Canadians as we do. So when you’re shipping
merchandise north of the border, trust the largest parcel delivery provider in Canada.
TM
Trademark of Canada Post Corporation. canadapost.ca/gonorth
Delivering the online world
TM