Ecommerce market: A huge opportunity for Daily Deal Industry

There will not be much written on this post other than to reference the stats within the graphics below. Bottom line is that the opportunity for continued growth for well positioned Deal sites is very attractive given the online shopping facts in Canada. The methods, operational procedures and revenue sharing % of Deal sites may change with time, but what does not change is:

  • the Canadian consumer’s appetite for shopping online (web, mobile, or through social networks).
  • the consumers fascination with deals (they will always want deals)
  • the merchant’s need to advertise and find customers

These are constant and will continue regardless of consolidation in this industry. There is a lot of opportunity for those deal sites that make it through.

 

The following represent an array of metrics pertaining to Canada’s online shopping landscape. These numbers do not include the approximately $400 million Canadians spent through Daily Deal sites in 2011.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Online shoppers in Canada in 2010 spent C$15.30 billion on  Internet shopping, according to a report from Statistics Canada.The report was based on data  from 30,700 households and 22,623  consumers.

 Top Insights On Canada Ecommerce
  •  51% of web users in Canada used the Internet to order products or services in 2010.
  • In terms of actual numbers Canadian consumers placed 114 million web orders.
  • 60% of respondents ordered via merchants and  affiliates  providers in the United States, while 18% placed orders with companies located in other countries.
  • 84-89% of the shoppers used credit cards to pay for online orders, while 31% used an online payment service.
  • 74%  Internet users in Canada shopped online, or researched information on goods or services, without necessarily placing an order

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canadians:

  • are the world leaders in viewing YouTube,
  • have the highest percentage of Internet users on Facebook
  • have out-tweeted Americans
Observations:
  • Canadians are socially engaged and they love to shop online.
  • Mobile commerce and social commerce are significant growth areas
  • Enabling an offline retailer to acquire online customers (through Daily Deal sites perhaps) is another growth area.
  • eCommerce sales in Canada are 1% of total retail sales. In the USA, they are about 8.6%. That is a lot of room for growth