E-commerce is picking up in Canada

April 24, 2014

Canadian shoppers have traditionally spent less at online credit card payment processing pages than have their American counterparts.

Canadian shoppers have traditionally spent less at online credit card payment processing pages than their American counterparts. However, some recent news reports – and some major developments from Canadian organizations – suggest that those figures may change significantly in the coming years. 

For instance, FedEx Canada is currently developing a plan to build a nationwide network of shipping centers specifically for the purpose of fulfilling e-commerce orders. The company will be locating these shipping centers in Home Hardware stores, and is currently working to create deals with small business owners and other organizations to fulfill online product orders on their behalf. 

“The rise in e-commerce has presented both Home Hardware and FedEx Express Canada an opportunity to enhance our respective business models,” explained Lisa Lisson, president of FedEx Canada. “Our alliance with Home Hardware expands our retail footprint across Canada, giving online shoppers more points-of-access options to meet their shipping needs.”

FedEx estimates that e-commerce will represent roughly $1 trillion in global sales by the year 2016, and also reports that roughly six out of every ten Canadians purchased something online during the course of the last holiday season. They’re not the only ones predicting a major increase in Canadian e-commerce spending: a recent Forrester Research survey projected that online sales to Canadians will grow by roughly 10 percent annually across the next five years, eventually accounting for well over $30 billion per year. 

“As e-commerce continues to grow, we are excited to work with FedEx which is a leader in the global transportation industry,” said Paul Straus, President & Chief Executive Officer for Home Hardware Stores Limited. “This alliance will bring more traffic into our stores as well as increase convenience for all customers.”

EBay is also expecting an increase in online spending among Canadians
Online commerce giant eBay is also expecting a major increase in online shopping among Canadians: a recent report from eCommerce Bytes detailed how the company would be opening a new fulfillment center in Ontario this year. A company representative identified the growing Canadian market as the reason for the new warehouse. 

“The Canadian market is providing new commerce opportunities for brands and retailers and our clients are turning to us to support their growth strategies in this Region,” said Tobias Hartmann, interim president at eBay Enterprise. “We are committed to offering our clients the capacity, speed and scale required to deliver an exceptional experience to their Canadian customers.”

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