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This Week in eCommerce: June 9 – 13

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Canada’s eCommerce industry has been growing over the past year, with sales over $135 Billion which is up from $122 Billion last year. But for anything to continue growing and improving, new ideas needs to be experimented. That’s exactly what’s happening in eCommerce right now. There’s no doubt that eCommerce is here to stay and people are embracing it, so companies are looking to expand into the online world even further. A few ways eCommerce is being integrated into bricks and mortars is with mobile loyalty apps and a new service called “Split Pay”. eBay, an already successful online retailer is expanding their merchandise by launching a designer shop called “Designer Collective”. One aspect of shopping that doesn’t seem to be gaining traction online is grocery shopping. Though that isn’t stopping retailers like Amazon, Wal-Mart, and Target from continuing to experiment with online groceries. Read more about these stories below, in our Weekly Wrap Up!

Canadian eCommerce Industry Growing

Article: Online Sales by Businesses Rise to $136B in Canada
Source: CBC

According to Stats Canada, Canadian businesses sold more than $136 Billion worth of goods and services over the internet last year. Majority of those sales, roughly 61%, came from wholesale trade which is around the same percentage as 2012. Where online sales really grew was in the service sector, rising from 11% to 13%. It’s great to see the Canadian eCommerce industry growing bigger.

Mobile Loyalty Apps Emerging

Article: How Loyalty Cards are Moving from your Wallets to Smartphones
Source: Financial Post

Do you have bunches of paper stamp cards from restaurants, cafes, and salons filling up your wallet? Or do you get a bunch of them and just forget about it? Either way, they’re a hassle. Which is why companies are moving towards smartphone-based loyalty programs. Starbucks for example, uses loyalty apps and now more than 10% of their revenue comes from mobile purchases! If done right, mobile loyalty programs can bring wild success. Another player working with loyalty apps is Brendan Ng, the general manager of the family owned FreshBowl. Although mobile loyalty apps don’t have mass acceptance yet, it looks like it might be the next thing to blow up.

Split your Bill with SplitPay

Article: A PayPal Founder Introduces a New Way to Pay for Cash-Strapped Web Shoppers
Source: Internet Retailer

Paying in instalments is a very popular option for many shoppers of big ticketed items because it makes them a lot more affordable! However, this option isn’t widely accepted online. But now with Split Pay, this might become possible on a lot more online stores. Split Pay is a service offered by Affirm, a company started by Max Levchin, the co-founder of PayPayl. Split Pay splits the purchase price for consumers, so they can pay monthly with an added interest fee. This service is designed to smooth our consumers’ cash flow, which can become unbalanced due to large purchases. Split Pay will really open up online shopping to the “slightly marginalized participants in the eCommerce world.”

eBay Brings you “Designer Collective”

Article: EBay Launches New Shops For Major Fashion Designers
Source: Fast Company

Typically when you’re shopping on eBay, you’re looking at wholesale, vintage, and second-hand items. However, now eBay is launching a “Designer Collective”, a designer shop for larger brands to merchandise their items. This will be a new medium for these designers to reach their audience, and even grow it! This eCommerce giant that has already dominated one segment of the internet is tapping into another.

Online Grocery Shopping, Yay or Nay?

Article: Online Grocery a Tough Sell Despite All the Buzz
Source: CNBC

Nowadays, you can buy practically anything online, even your groceries! Major retailers such as Amazon and Wal-Mart have been experimenting with online groceries, but a new study from PwC is showing that only 1% of customers are using online shopping as their primary way to purchase groceries. This stat is proving to show that maybe groceries is one thing left offline. However, now with Target also trying to get in the space, it looks like retailers will continue to put pressure into this segment of online shopping.

Why Businesses Should go Digital

Article: Canada’s Small Businesses Playing Catch-Up in Online Retail
Source: Financial Post

Although Canada’s online sales are growing, most of that growth is coming from larger, enterprise businesses. Smaller businesses see a major barrier in the hefty investment needed to build and maintain a website. Instead, a lot of effort is being turned to social media and other online shopping portals such as eBay. These are inexpensive routes to having an online presence. However for those that did sell online, about 24% of their total sales were from eCommerce. Although going digital can be a challenge in the beginning, it will be crucial for businesses to go online. Especially smaller businesses since it allows them to market their products much more broadly.

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