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Online Shopping - Canada - July 2018

OVERVIEW
What you need to know
Definitions
EXECUTIVE SUMMARY 
The issues
Retailers haven’t reached their full potential in engaging Canadians with online shopping
Figure 1: Shop online at least once a month 2015 vs 2018, August 2015/April 2018
Canadians likely doing more browsing than actual shopping online
Figure 2: Percentage of total shopping done online, April 2018
The presence of Amazon looms large
Figure 3: Percentage of total online shopping done on Amazon, April 2018
The opportunities
Incentivizing re-orders may yield gains amongst parents with under-5s
Figure 4: Percentage of total shopping done online, April 2018
Boomers are an untapped group with solid potential
Figure 5: Online shopping frequency, Baby Boomers vs overall, April 2018
18-34s are paying attention to product suggestions, give them some food for thought
Figure 6: Receptivity to retailer suggestions, 18-34s vs overall, April 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Consumers have more spending power
The Canadian retail landscape is changing
Tariffs are likely to have an impact on the prices of goods
MARKET FACTORS 
Perceived financial health has improved
Figure 7: Perception of financial health, January/February 2016-18
The retail landscape in Canada is changing
The presence of Amazon is real and will grow
International retailers continue to increase their presence
Consumers could be seeing higher prices due to tariffs
KEY PLAYERS – WHAT YOU NEED TO KNOW 
The appeal of Amazon is strong amongst Canadians
Cash-back sites are motivating consumers to shop online
Retailers haven’t reached their full potential (yet)
Celebratory days attract consumers during off-peak times
Smart speakers will have an impact on how consumers shop online
WHAT’S WORKING?
Amazon’s presence is strong in Canada
Amazon.ca has mass appeal
Figure 8: Proportion of total online shopping done on Amazon.ca, by household income, April 2018
The breadth of products is a draw – In their words
Amazon’s ad campaigns continue to reinforce variety
Figure 9: A to Z, May 2018
Amazon’s other features also have broad appeal
Cash-back shopping sites are working to drive online traffic
Figure 10: Use cash-back shopping sites, parents with under-12s vs overall, April 2018
Every little bit helps – In their words
Ebates ads are here to help
Figure 11: Pshhh!, September 2016
Figure 12: Is Ebates Legit? People Explain the Truth About Ebates!, June 2017
WHAT’S STRUGGLING?
E-commerce usage amongst Canadians continues to lag behind the US
Canadians are less likely to be doing the bulk of their shopping online
Figure 13: Percentage of total shopping done online, Canada vs US, April 2018 (Canada)/March 2018 (US)
Proportion of monthly online shoppers has increased in the US, stable in Canada
Figure 14: Shop online at least once a month, Canada vs US, August 2015 and April 2018 (Canada)/March 2015 and March 2018 (US)
Retailers are missing out on older Canadian shoppers
Figure 15: Percentage of total shopping done online, by age, Canada vs US, April 2018 (Canada)/March 2018 (US)
WHAT’S NEXT?
Smart speakers are changing how and when consumers shop
Figure 16: Winter win, February 2018
Amazon will continue to broaden its appeal to younger shoppers
Retailers create their own special celebration days
Figure 17: Way Day, Wayfair direct mail campaign, April 2018
Companies are finding ways to make shipping even faster
Figure 18: Amazon Key, October 2017
THE CONSUMER – WHAT YOU NEED TO KNOW 
Virtually all Canadians shop online
Canadians still do the bulk of their shopping in-store
Amazon’s presence looms large
Consumers are toggling between devices when shopping online
FREQUENCY OF ONLINE SHOPPING
Virtually all Canadians are shopping online
Figure 19: Online shopping frequency, April 2018
Parents with under-5s are heavy online shoppers
Figure 20: Online shopping frequency, parents with under-5s vs overall, April 2018
Small incentives for re-orders should work to grow reliance on e-commerce
Benefits to be had by targeting dads
Figure 21: The story of Lucy, August 2017
Retailers may (still) be missing the mark with Boomers
Figure 22: Online shopping frequency, Baby Boomers vs overall, April 2018
Holiday prep is a good time to connect with women aged 55-64
RELIANCE ON E-COMMERCE
Canadians still lean towards shopping in-stores
Figure 23: Percentage of total shopping done online, April 2018
Figure 24: Attitudes towards online shopping, April 2018
Young men more inclined to making the bulk of their purchases online
Figure 25: More than 50% of total shopping done online, men 18-24 vs overall, April 2018
Tiered offerings supported by messages of self-gifting will resonate
Boomers are still attached to physical stores
Figure 26: Attitudes towards online shopping, April 2018
Connecting with Boomers while they’re in their comfort zone will yield gains
RELIANCE ON AMAZON
Amazon is an undeniable presence
Figure 27: Proportion of total online shopping done on Amazon, April 2018
Amazon appeals to all ages
Figure 28: Proportion of total online shopping done on Amazon.ca, by age, April 2018
Storytelling and emphasising quality should keep the attention of older consumers
Figure 29: The musical, April 2018
Quebecers are less likely to shop from Amazon
Figure 30: Proportion of total online shopping done on Amazon.ca, Quebec vs overall, April 2018
Quebecers less concerned about shipping, so give them other perks
PRE-PURCHASE PROCESS
Canadians may be doing more browsing than actual shopping online
Figure 31: Pre-purchase process, by category, April 2018
Men 18-34: it’s more about consideration when shopping for electronics
Figure 32: Pre-purchase process of electronics and appliances, men 18-34 vs overall, April 2018
Gains to be had by giving them some (more) food for thought
Also, remind them of loyalty points
Women aged 18-24 are scoring for deals when shopping for clothing
Figure 33: Pre-purchase process of electronics and appliances, women 18-34 vs overall, April 2018
The quest for deals means they will be interested in more than just promotion codes
DEVICES AND PLATFORMS USED FOR ONLINE SHOPPING
Consumers are toggling between devices and platforms
Figure 34: Devices used for online shopping, April 2018
Brand experience is brand experience, no matter the device
18-24s may be moving away from desktops
Figure 35: Usage of desktop vs mobile phone for online shopping, by age, April 2018
Incentivising sharing will boost discovery amongst women aged 18-24
Parents with young children are using their phones
Figure 36: Usage of mobile phone for online shopping, by age of children at home, April 2018
Parents will lean on brands that lend a helping hand
BASKET BUILDING AND ABANDONMENT
Clear communication of costs are a must
Figure 37: Basket abandonment due to unexpected prices and high shipping costs, April 2018
Affluent consumers are more sensitive to surprises and may demand greater transparency
Threshold for free shipping matters to women 35-54
Figure 38: Agreement with ‘I often order more to get free shipping’, women 35-54 vs overall, April 2018
Product suggestions will grow baskets of 18-34s
Figure 39: Receptivity to retailer suggestions, 18-34s vs overall, April 2018
Personalized recommendations are key – In their words
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations

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