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Ask Mr. D - ECommerce Sales
Dear Mr. D, After spending about a year as an affiliate for other companies, I have come up with my own product. My product is similar to one that I was selling as an affiliate. I made real good money selling this product as an affiliate, but my...
Ecommerce Solution for the Big and Small Business
Do you have a business? Were you told you needed an ecommerce solution to help your business? Do you need to know how and where to get an ecommerce solution? Perhaps you are not even sure what an ecommerce solution is. For those of you who have...
eCommerce Web Site Building: Where Do I Start?
An article discussing the details on what tools, skills, and services you might need to start an ecommerce business.
Building a web site isn't something that is really cut and dry. There's a huge variety of products and services that can...
Ever Wondered What An eCommerce Merchant Account Is?
An eCommerce merchant account can be likened to the cashier of an actual, physical store. They process payments, and eCommerce merchant accounts do the same, albeit, with added flair and whole lot more features.
Much like how an actual, physical...
Microsoft Great Plains eCommerce: overview for developer
Microsoft Business Solutions Great Plains was designed back in the earlier 1990th as first graphical ERP/accounting system for mid-size businesses. The architects of Great Plains Dexterity – this is the internal mid-shell, all Great Plains was...
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Canada and eCommerce
Canadian eCommerce growth was recently flat but still has an
attractive upside...
Recent studies found that Canadian retail e-commerce growth was
flat year over year (2003-2004). After further examination
however, approximately 60% of the 100 largest non-travel sites
succeeded in growing their sales over 20%.
Also interesting is the trending of Canadians from buying at
non-Canadian sites to domestic sites (63% domestic, 37%
foreign). This "domestic shift" clearly benefits the launching
of a new eCommerce business in Canada.
The sales opportunity lies with the "early adopters",
individuals primarily the 18-34 year old age range. This segment
is more technologically savvy and more likely to purchase
online. In a 2003 to 2004 sampling comparison, this segment's
overall e-commerce spending increased 44%. The 35 to 54 age
group increased only 5% and 55+ increased 18% (includes online
travel).
Overall Internet Adoption rates still trail the U.S. and come in
at approximately 52%. However, with the development of new
Internet infrastructures and the maturation of Canadian ISP's,
this number will likely rise in the next 3-5 years. The
following quote from the Canadian government re-enforces this
theme.
"To reach our new national goal (relating to e-commerce)
Canadians will need to develop strategies that build an
intelligent infrastructure to serve as the backbone of the
e-economy- by encouraging investment, strengthening research,
enhancing commercialization and ensuring that all Canadians have
access to this infrastructure and know how to use it."
(September, 2004)
Shifting demographics & lack of online competition equal a
substantial opportunity...
Forrester Research reports that 48% of Canadian web shoppers
are now female compared to 39% in 2003. 74% of web buyers are
married and likely are home shoppers, compared to 68% in 2003.
With the gender gap closing, online home retailers have a great
opportunity to target their core customer segment: the
30-40yr
old female who owns or maintains a residence.
Within this sector, it is rare for U.S. based retailers to have
online Canadian stores. Many brands will ship to Canada, for
very high costs (customs duty & shipping) but this likely leads
to an unpleasant experience for the Canadian consumer. These
high costs, compiled with a lack of domestic Canadian retailers
providing an e-commerce offering, are driving the stagnant
growth of the online sales channel.
By being a "first-mover" in establishing a presence in the
online marketplace within Canada, online retailers will
facilitate sales from consumers that want to get products
shipped from their native homeland after being paid for in
Canadian currency.
Similar to the U.S., consumers are exhibiting multi-channel
tendencies and embracing the emergence of broadband
connectivity...
Canada is the only country in the world in which broadband
overtook dial-up access in 2003. Currently 48% of all Canadian
consumers have broadband access and they are 67% more likely to
have high speed web-access than American consumers.
This impressive penetration may prove to be a strong driver for
online circulars and new online merchandising tactics, as
product differentiation are established outside of price.
Canadian shoppers are also parallel to U.S. consumers in their
multi-channel behavior. 58% of Canadian shoppers have researched
a product online and purchased offline, spending an average of
$440. An online Canadian strategy must focus on integrating the
online and physical store with store locator functionality and
other tools to promote cross-channel behavior.
In conclusion, multi-national retailers should closely examine
the Canadian eCommerce opportunity. Attractive consumer
demographics, an established broadband infrastructure, and a
shift in overall shopping tendencies make the Canada a
high-growth and un-saturated area for multi-channel retail.
About the author:
http://www.trinityinsight.com
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