Canadian eRetail sales are growing. What about their volatility? Is it easy to obtain a Canadian merchant account? You can get answers to these questions if you keep on reading below.
Canadian Merchant Account and eCommerce Sales
eCommerce in Canada has been developing more slowly as compared to the UK, the US, and other countries. The reason is that each country has unique challenges serving the market. However, the most significant factor driving eCommerce sales in Canada is associated with increasing consumer demand.
A 2018 study of Canadian digital commerce landscape showed that though consumers were more and more often shopping online, merchants weren’t embracing the eCommerce wave fast. Almost 50% of Canadian B2B sellers were generating over 1/4 of their sales over the Internet.
Canadians are still willing to purchase things online. The latest national retail spending statistics reveal that out of the $352-billion in retail sales driven within the country in 2016, nearly 7% were completed over the Internet.
eCommerce is expected to represent 10.0% of the total retail sales in Canada by the year 2020, and the retail eCommerce sales are forecast to account for CA$55.78 billion or $42.09 billion.
The need for convenience and personalization represent the major drivers of the increase in online shopping among Canadians. This has made brands and retailers expand their digital footprints in the last few years.
With this being said, it’s too important to work with a reputable payment processor so to be able to take the right steps for growing your business. eMerchantBroker.com, an award-winning processor and alternative online lender that boasts an A+ rating with the BBB, can get you a reliable Canadian merchant account with the lowest possible rates in the industry.
eMerchantBroker.com has an A rating with Card Payment Options and is dedicated to providing both low and high risk merchants with the best payment processing services tailored to their own business needs. That’s why EMB talks to every business owner to get to know his/her business specifics. With EMB, you can grow your business without challenges.
Rise and Volatility of Canadian eRetail Sales
According to Statistics Canada, the country’s national statistics agency, Canadian online retail sales increased over 13.4% from January through April. Online represents a growing part of total retail.
- Canadian merchants’ online sales represented 2.82% of Canada’s total retail during the above-mentioned period. This was up from 2.56% in the same period in 2017.
- According to eMarketer, 19.2 million digital buyers were estimated to be in Canada in 2017. These buyers are more and more often using omnichannel options and multiple devices.
- YoY (year-over-year) sales growth in January and February made up 16.6% and 17.0%, respectively. The percentage fell to 12.0% in March and 8.8% in April.
- Statistics Canada reports that online sales by Canadian merchants accounted for C$15.69 billion or $11.99 billion in 2017.
- Canadian retail sales had the maximum growth in 5 months in March. The reason was associated with higher spending on vehicles and clothing, as Statistics Canada notes.
- The 0.6% rise has been the biggest since October.
- Motor vehicle and parts dealers saw a 3% increase, which was driven by the demand for new cars. Except for vehicles, retail sales fell 0.2%.
- In June, inflation accelerated to an annual clip of 2.5%. This is up from a 2.2% reading in May, according to Statistics Canada’s most recent consumer price data. The rise was lifted by higher energy prices, specifically gasoline.
- There’s been a 1.2% drop in food sales and a 1.9% dip at gasoline stations. The reason is that consumers were faced with higher prices at the pump.
Canadian eRetail sales continue to climb. However, the growth is sometimes volatile. If you want to grow your business successfully, take all these data and analyses into account. Also, look for a respectable merchant services provider that can offer you the best deal for your business.