eCommerce in Canada; the opportunity for the deals sector

eCommerce in Canada; the opportunity for the deals sector

The growth of certain sectors of the deals market have softened while other are still growing. The daily deal market in Canada has stopped growing in terms of revenue from local merchant vouchers, however revenue from product daily deals continues to grow. Coupon sites and grocery coupons continue to grow well in Canada as more and better services become available to Canadians. Sales of coupon books have dropped while more Canadian take to mobile deal apps. However, here are two key numbers for all in the deals industry:  24 billion & 34 billion. These are the numbers for ecommerce purchases in Canada for 2013 and 2016 respectively.

ecommerce canada

 

Here are some other numbers and discussion points:

  • These numbers represent only about 1%-3% of total retail sales in Canada. Very low. The opportunity is a large one for Canadian ecommerce.
  • Half of these numbers are for sales to a US based ecommerce store. Most likely because product selection and pricing is far better in the US. This is slowly changing though.
  • Only 60% of Canadians made an online purchase, well behind the US at 70% and the United Kingdom at 82%.
  • Canada ecommerce sales will grow faster than in the US ads more and more Canadians will opt to purchase online and through mobile
  • The Fastest growing ecommerce sites in Canada are Shop.ca and Beyond the Rack
  • The top daily deal providers in Canada that are maturing and including product sales are Teambuy, Wagjag, Tuango, Buytopia and Groupon.
  • Coupon sites like Redflagdeals and SmartCanucks, in addition to Coupon Affiliate networks like commission Junction, Avantlink, Linkshare and shareasale are seeing more and more Canadian retailers offering coupons and more demand from consumers.
  • The top B2C ecommerce sites in Canada are The Hudsons Bay, Coastal Contacts, Beyond The Rack, Lululemon, Shopping Channel, Indigo/chapters, Ice.com, Aldo, Mountain Equipment Coop, shop.ca.
  • Shop.ca is the largest Canadian pure online shopping portal in Canada
  • Beyond The Rack is on pace to be Canada’s top ecommerce site, overtaking Hudson’s Bay sooner or later.

 

Ending thoughts:

-Daily Deal companies should mature and growth their services to include online shopping beyond deals to local merchants. This is already happening and should continue to accelerate over the upcoming year. The likes of Teambuy, Wagjag, Tuango and Buytopia, given the size of their consumer database, can quickly become some of Canada’s top product ecommerce destinations once they really focus on growing that part of their business. Local sales will always exist but product sales can quickly become their top revenue source.

-Coupon site should work closely with Affiliate networks to convince more Canadian retailers to list online coupons.

-The ecommerce opportunity in Canada is in growth mode. There is no established market leader nationally or regionally. The opportunities for deal providers are good if they continue to accumulate email subscribers and online visitors. Those with existing large consumer databases in the millions have a strong probability of leading this country in ecommerce sales if they execute well.

 

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