Canadian Ecommerce in Focus: Insights and Opportunities for Online Merchants

In a challenging economic landscape marked by high inflation and recession fears, Canadian online merchants face the dual task of meeting rising customer expectations for seamless online experiences and operating with a purpose beyond profit. Canada Post's survey of 755 merchants and 5,000 shoppers sheds light on the evolving ecommerce dynamics, offering vital insights for businesses aiming to thrive in these transformative times.

**Insights and Opportunities**

1. **Celebrate Your Most Loyal Customers**: In an era of budget-conscious shoppers and cost-cutting by merchants, investing in customer loyalty emerges as a strategic imperative. Personalized offers and exclusive rewards can enhance customer retention, a cost-effective strategy compared to acquiring new ones.

2. **Unleash Customer Satisfaction Through the Post-Purchase Experience**: With a focus on nurturing relationships and improving customer experiences, online merchants must optimize the post-purchase journey. Enhancements in packaging, delivery, and returns can significantly elevate shopper satisfaction.

3. **Stand Out With a Purpose-Driven Approach**: Beyond competitive pricing, shoppers seek value that aligns with their values, such as sustainability and support for Canadian businesses. A purpose-driven business model can differentiate your brand and strengthen connections with consumers.

4. **Harness Channels Strategically for Maximum Impact**: As shoppers oscillate between online and offline channels, merchants should tailor their strategies to the unique advantages of each. An immersive in-store experience and a frictionless online shopping journey can effectively capture consumer interest.

5. **Optimize Your Shipping Rates Through Test and Learn**: The critical role of shipping costs in purchase decisions necessitates a balanced approach. Setting free shipping thresholds slightly above the average order value and adjusting based on customer response can help maintain profitability without deterring shoppers.

**The Merchants’ Perspective**

- **2022 Sales Growth**: 90% of merchants reported higher sales, with more than a third experiencing over 20% growth, highlighting the ongoing shift towards ecommerce.
- **Consumer Trends**: Sustainability has emerged as a significant trend, with 79% of merchants acknowledging its importance for success.
- **Optimism for Growth**: Despite economic uncertainties, 60% of merchants anticipate better performance in 2023, driven by expanded customer bases and strategic business changes.

**The Shoppers’ Perspective**

- **Behavioral Changes**: High inflation has led shoppers to be more strategic, focusing on essentials and seeking deals, though online shopping levels remain high compared to pre-pandemic times.
- **Frustrations and Expectations**: High shipping costs, delivery delays, and packaging waste are major shopper grievances. There's a strong desire for reduced prices, improved return policies, and sustainability efforts.

**Conclusion**

The insights from Canadian merchants and shoppers reveal a complex but opportunity-rich ecommerce landscape. By focusing on customer loyalty, enhancing the post-purchase experience, adopting a purpose-driven approach, strategically utilizing sales channels, and optimizing shipping strategies, online merchants can navigate the challenges and capitalize on the opportunities presented by the evolving ecommerce environment.

This article provides a concise overview of the Canada Post report.
For access to the complete report, click here.