Foreign Retail Sites Account for About Half of Online Purchases in Canada

Aug 17, 2017

The retail industry in Canada is undergoing a transformation. In many cases, e-commerce has been added to the traditional retail experience, thus giving birth to new digitally-enabled shopping experiences.

Electronic Commerce in Canada

Electronic commerce is becoming more and more popular among Canadians, and they plan to go on spending money online. According to Forester research, Canadians are expected to spend $39 billion online by 2019, which accounts for 9.5% of all retail purchases in Canada. According to Statistics Canada, Canadian companies sold over $136 billion in goods and services online in 2013, which is up from $122 billion in 2012.

Canadians purchase clothing (42%) and travel (40%) online in large numbers. Media sales are also popular online, and many Canadians report purchasing books, music, apps, and show tickets online.

Merchants interested in a Canada high risk merchant account should consider opening one with, a reputable payment processor and business funding provider that specialize in the high risk sector. EMB is voted the #1 high risk processor in the US and boasts an A+ rating with the BBB. Moreover, EMB has an A rating with Card Payment Options and is named one of Inc. 500’s Fastest Growing Companies of 2016. offers the lowest possible rates and the best merchant account services in the industry. The application process is simple and hassle free. You’ll be required to provide the minimum of paperwork.

What Do Statistics Show?

Although the biggest online retailers in Canada are growing faster as compared to their US counterparts, foreign retail sites account for nearly half of Canadian consumers’ online purchase, E-Tail Canada reports.

Moreover, 62% of Canadian retailers having participated in the survey saw the value of their online orders rise between 2015 and 2016. 71% saw their conversion rate grow (the number of initial customer clicks that result in an actual purchase), as opposed to browsing.

37% of Canadian retailers surveyed are offering customers so-called “cross-channel” returns or exchanges so that customers can return items in stores that they bought online. 8% were in the process of implementing the capability, and 13% planned to implement it in the upcoming 2 years.

According to Statistics Canada, Canadian e-commerce sales accounted for $19.2 billion in 2016, with nearly 60% of the purchases made from domestic retailers and 40% from foreign retailers.

67% of the retailers surveyed report they use digital marketing instead of traditional marketing budgets. The overall marketing budget had shifted to digital by over 50% at 12% of the companies surveyed, while 19% said digital marketing took up 25% – 50% of their overall marketing costs.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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