B2C Ecommerce in Canada is Dominated by U.S.-Based Retailers - Global Trade Magazine
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  November 27th, 2015 | Written by

B2C Ecommerce in Canada is Dominated by U.S.-Based Retailers

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  • Canada ranks in the top ten B2C ecommerce markets worldwide.
  • The leading B2C ecommerce players in Canada over the past years have been U.S.-based merchants.
  • Over half of Canadian consumers believe that crossborder shopping from the U.S. has become a costlier option.

Business-to-consumer ecommerce in Canada is dominated by U.S.-based retailers, according to a new report from the German-based market researcher yStats.com, but local Canadian retailers could be favored this year by a weaker Canadian currency.

In North America, Canada is overshadowed by the size of the neighboring U.S. B2C ecommerce market, the report noted, but Canada is predicted to grow faster than the US market in the next several years. Canada ranks in the top ten B2C ecommerce markets worldwide in terms of sales and boasts 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.

Mobile 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 offerings.

Another important attribute of B2C ecommerce in Canada is crossborder online shopping. In 2014, more than half of online shoppers in the country purchased crossborder due to lower prices and better product selection. However, yStats.com’s research shows that the weaker Canadian dollar with respect to the U.S. dollar could moderate the crossborder trend. As of mid-2015, more than half of consumers in Canada believed that crossborder shopping from the U.S., whether online or in-store, has become a costlier option.

The leading B2C ecommerce 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 BestBuy and Walmart. Chinese marketplaces, including Alibaba Group’s Aliexpress.com and Alibaba.com websites, also appear in the top 10 most popular commerce websites.