Canadian Stores Behind in Online Sales

Dec 31, 2015

Despite a massive increase in online sales across the world as a whole, Canadian retailers are experiencing a much slower increase in the digital arena. In 2014, e-commerce was only about 6 percent of total retail spending in Canada. This is 3 percent less than the U.S. e-commerce rate. There is much speculations about why Canadian retailers lag behind, from web infrastructure to high transportation costs. Whatever the reasons, Canadian retailers must focus on increasing traffic to their websites or continue to lose customers to foreign retailers.

According to a recent report, stores in the Metro Vancouver area and other metropolitan areas lost about $1.6 billion in retail sales this year to foreign online retailers. Compared to the UK and the U.S., Canada also has a lower share of online retail sales. For example, Canadian company Indigo owns 1.5% of Canada’s ecommerce industry, while United States company, Amazon, has almost 24% of Canada’s ecommerce market.

But Canadian retailers could see a drastic increase in Canadian online sales if more retailers actually moved online. A 2014 Retail Council of Canada report noted that 61% of independent retailers still had no online presence at all. This figure is especially worrisome considering that 68 percent of British Columbians chose to shop online instead of in-store last year. This was a 19 percent increase over 2013. Plus Canadians are projected to spend 50% more online between 2014 and 2019. These trends indicate that even small merchants won’t be able to afford not to have an online presence within a few years. If they do not build a working online presence, there is a high chance of job loss and store closures.

Canadian merchants must invest in creating user-friendly, online retail environments as online sales take the world by storm. eMerchantBroker is here to assist online merchants with their online payment processing needs. To open your new high risk Canadian merchant accounts, just complete our low hassle online application or call us at 1-800-621-4893. Remember that EMB has a track record of successful online merchant sales, and will provide you with a competent and safe payment processor 24 hours a day.

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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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