The number of Canadians shopping online is steadily rising each year. Recent surveys have shown that around 86% of Canadians have made an online purchase within the past year alone. Furthermore, the number of Canadians who prefer making their purchases at traditional brick and mortar stores is on the decline, around 59% in 2018 as opposed to 66% just 2 years ago. This decline in in-store purchases and the rise in online purchases should be a good enough reason to get your store online, however if you’re still not convinced, keep reading to find out more.
“Showrooming” refers to the practice of browsing products in a traditional retail store and then purchasing the said products online. As witnessed by the statistics covered above, this trend is on the rise. As much as 80% of Canadians admit to scouring the web to find the best deal online and 36% of Canadians admit to showrooming before making a major purchase. Whilst many brick-and-mortar stores despise this practice, it is often somewhat misunderstood. In the past, comparing prices between different stores was often a laborious and lengthy task, however the emergence of online shopping has been a game changer.
Thanks to the internet and the rise of mobile internet usage, prices can be compared in a fraction of the time it used to take. Therefore, when making a major purchase it’s a given that savings play a big part in whether a potential customer makes their purchase in-store or online; especially in the case of non-essential, luxury items where the customer can afford to wait a few days for it to be shipped to them.
Effects of Online Shopping on the Canadian Retail Sector
The rising trend of online shopping is not necessarily a bad thing for Canadian retail businesses. Most Canadians still prefer to support local businesses rather than purchase from overseas, especially when making large purchases in excess of $500. Surveys have shown that 74% of Canadians are comfortable making a purchase from a local retailer as opposed to just 55% comfortable with buying overseas. In fact, when given the choice, 62% actually prefer purchasing from an online Canadian retailer, with the main reasoning behind this being that they prefer to support the local economy.
Canadians’ Trust in Mobile Payments/Digital Wallets
In 2018, 37% of Canadians said they were comfortable making an online purchase using their mobile device or a digital wallet service, as opposed to just 23% in 2016. As mobile internet usage becomes more and more popular, it is understandable that the numbers of consumers shopping online on their mobile devices will also rise. Therefore, it is essential that any retailers planning on taking their businesses online develop mobile-friendly shopping platforms.
At the end of the day, it’s clear that the number of Canadians shopping online, as well as their trust in online retailers, is on the rise. To remain competitive in this digital age, local businesses need to step up to the game and offer their products and services online. With years of experience in marketing online businesses online, The Three Marketers can help you get your store online to reach a wider audience and boost sales. Get in touch with us today to find out how we can help.
source: CIRA – Canada’s Internet Factbook 2018