Canada Will Outpace U.S. in B2C E-Commerce Growth
That was the key conclusion of a new report recently released by the Germany-based market research company yStats.com.
North America was the world’s second largest B2C ecommerce market in 2014. In the next few years, this region’s share of global B2C ecommerce sales is predicted to decline slightly, primarily due to the expanding share of the faster growing Asia-Pacific region.
In 2015, B2C ecommerce sales in North America are predicted to rise by a small double-digit percentage, with the U.S. still accounting for more than 90 percent of the pie. The U.S. is more advanced than Canada both in online shopper penetration and in B2C ecommerce’s share of total retail sales. But Canada is forecasted to lead the U.S. in B2C ecommerce growth rate by a small margin through 2019.
Another finding of yStats.com’s report is that the rise of mobile commerce and omnichannel retail is an important trend both countries. U.S. m-commerce sales are projected to be dominated by sales generated through tablets, while in Canada mobile browsers were ahead of mobile apps in terms of usage for mobile shopping at the end of 2014.
In Canada, crossborder online shopping is also significant, though its importance is expected to somewhat lessen as the Canadian currency has weakened with respect to the U.S. dollar.
The U.S. is home to some of the world’s largest companies in terms of online retail sales and U.S. merchants dominate in both domestic and the Canadian markets. Amazon.com is the leader in both countries, with a double-digit market share, according to yStats.com’s new report. In order to compete with Amazon, some major U.S. retailers, including Walmart and Target, are heavily investing in expanding their ecommerce capabilities. Nevertheless, online pure-plays remain at the forefront of the B2C ecommerce growth in North America.