We already knew Canadians were shopping online more than ever before. A new report from Canada Post has highlighted just how comfortable we’ve become hitting that ‘buy now’ button.
Just released, Canada Post’s Canadian E-Commerce Benchmark Report surveyed 5,000 Canadians who had made online purchases within the last 12 months. Topics included what they were buying, how much they spend, what they expect, and what technology they use. The results are extremely useful for highlighting how important a strong online presence is for small businesses.
We’re Shopping Online More Frequently
According to the report, the average number of online purchases made by Canadians shot up 58 per cent between 2016 and 2018. This trend is being driven mostly by frequent and power shoppers (those who make more than seven purchases online a year) who now account for 58 per cent of all online buyers; up from 43 per cent in 2016. Interestingly, people who shop online “once per year” has all but disappeared as a demographic. In 2016, these shoppers accounted for 12 per cent of the total.
Will This Trend Continue?
Indications are this trend will grow in the coming years. Not only are Canadians increasing their basket spend, they’re also planning to make more purchases online in 2019. In 2016, the average basked spend was $106; two years later that figure jumped to $175, an increase of 65 per cent. Approximately one third of all respondents signified they plan to buy even more in the coming year.
Where is the Money Going?
On average, Canadians buy products from 4.8 different categories online. Computers & electronics proved the most popular category at 42 per cent. Women’s apparel was closely behind on 41 per cent (men’s apparel sits at 31 per cent). The good news is that 37 per cent of respondents said they will buy more from Canadian retailers in the coming year.
Know Your Market
The shoppers who spend the most online are categorized as HYPER+ shoppers. These individuals make over 25 purchases per year. They are typically young (41 per cent are millennials) and have an average annual household income of $106,000. Their footprint has increased exponentially in the last two years, going from 12 per cent of all online purchases in 2016 to 60 per cent in 2018. The main takeaway from this stat is this is a market segment you want to cultivate and keep happy. They appreciate prompt delivery, cutting edge technology and appreciate VIP perks as part of the service.
Nail Your Logistics
Tracking and speedy delivery is a huge area of interest to online shoppers. Most have expressed their unhappiness when it’s difficult to track where their package is. In fact, close to 40 per cent of shoppers will avoid purchasing from retailers with poor tracking or logistics partners.