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How to Develop Ecommerce Marketing Strategy for Canadian Market?

Posted by maxbpoblog Feb 01,2020

Develop Ecommerce Marketing Strategy for Canadian Market

Worldwide, the eCommerce industry is certainly flourishing. Globally, e-commerce retail sales are expected to rise from 2.3 trillion U.S. dollars in 2017 to almost 4.9 trillion U.S. in 2021. As of 2018, the Canadian e-commerce market had expanded to almost 1.6 billion Canadian dollars. Within the retail e-commerce marketplace, Canadian revenue is expected to exceed 55 billion Canadian dollars by 2023. This is a considerable increase over the earnings generated in 2018, 40 billion Canadian dollars as well as an increase in parcel shipping.

As stated by the U.S. International Trade Administration, One-third of the Canadian e-commerce dollars are going to retailers located in the US. Over 9.2 Canadians created at least one purchase from a U.S. website in 2018 alone. The growth of this “power shoppers” in Canada, individuals who purchased over 25 things annually online increased from 10 percent in 2016 to 18% in 2017. That 10% of the Canadian population represented 48% of all the B2C deliveries in the country.

82 percent of Canadians live in medium to large-sized cities and Canada’s e-commerce market is the largest in the world.

In terms of consumer penetration levels for e-commerce, the 2018 rate of 53.6% is expected to reach 65.8% by 2022. This may imply that Canadians out of metropolitan areas such as those in more isolated geographical regions will also be making e-commerce purchases. Overall, the Canadian e-commerce industry is flourishing and is likely to do this for many years to come.

Cross-border fulfillment, despite our friends in the North, can be a tricky business, particularly in fulfilling Canadian consumers’ desire for quick, low price order fulfillment. American companies operating in Canada have been flummoxed an established logistics plan that worked perfectly well in the USA is not applicable to the Canadian sector.

Typically, intra-Canada fulfillment is simpler than cross-border fulfillment and this model gives the very best service-level alternatives. Cheaper effective, deliveries also tend to be easier from the intra-Canada satisfaction version. This is important since it facilitates a more brand consistent experience across all channels and provides quicker delivery with lower shipping prices and a simpler returns procedure. Consumers usually evaluate brands dependent on the shipping experience and buy accordingly.

Having a prosperous intra-Canada satisfaction strategy is dependent upon numerous factors like locations to store stock for quick, easy accessibility and delivery. Ordinarily, Toronto, Edmonton, Montreal, Mississauga, Vancouver and Calgary are considered to be the best locations for positioning fulfillment centers to reach targeted populations of online shoppers.

Cross-Border Fulfillment into the Canadian Market

The 1994 North American Free Trade Agreement, commonly known as NAFTA led to a 400% increase rate in cross border commerce by making it easier to meet cross-border orders between the United States and Canada. More than 83 percent of Canadians purchased goods via an international retailer in 2017, the majority of which were fulfilled by retailers in northern regions of the U.S. that subsequently hauled the goods into Canada.

What Should a Canadian Logistics Strategy Include?

In developing an effective logistics plan for a retail e-commerce performance, it is crucial to thoroughly consider the processes of inbound and outbound logistics, order management, transportation, and reverse logistics. This includes not only how each procedure should optimally work but also what to do when the typical scenario fails and the best way to handle each element of the challenge.

  • Fulfillment/Warehouse network
  • Rental management and monitoring
  • Transportation and logistics
  • Returns
  • Customs procedure

Regulatory compliance with varied labeling and advertising demands, tax code, protection mandates.

Regulatory compliance with requirements mandated by each territory or province.

From customs delays, shipping costs, and damaged merchandise to incomplete or incorrect customs paperwork, having logistics experts knowledgeable about the Canadian market counsel, you can help you sidestep disaster and develop an effective logistics plan.

Most freight firms in Canada are regional rather than national. To traverse the country, multiple transportation and logistics firms are needed. This may result in inconsistency in service, decreased visibility throughout the distribution process, lack of trackability, and frequently reduced accountability between logistics suppliers. American cargo businesses should know about these problems when contracting for the intra-Canadian facet of cargo transit.

Use of Technology in the Canadian Transport and Logistics Industry

Nowadays, as with many aspects of everyday life, technology plays an essential function. In dealing with time-sensitive imports such as e-commerce satisfaction and last-mile delivery, logistics and transportation service suppliers need to avail themselves of leading-edge technologies to shave minutes, even hours away transit times.

The use of Final Mile Logistics Providers

Local transport and logistics carriers are generally needed to deliver into the most remote areas of Canada unless Canada Post, the federal post office process, is used. 30 of E-commerce retailers undergo a speed of returns compared to that experienced by physical retailers, up to 30% of sales.

The Challenge of Product Returns

Regrettably, e-commerce retailers experience a rate of returns than that experienced by brick and mortar retailers, up to 30% of earnings. It’s insufficient to focus on delivering goods to customers. Assuming a smooth, easy returns procedure is imperative to any e-commerce retail company plan.

Determine a reverse osmosis process, preferably one that consolidates yields to a centralized place for processing. Using a centralized consolidation stage will set smaller distributions so that yields can be grouped to clean the border as a single unit. This will reduce the time for habits review and assist in maintaining transport costs under control. This may also be tremendously useful for processing returns from Canadian consumers who need to cross the border.

Industry research involving e-commerce retail indicates that customers expect to return purchases at little if any cost. Consumers expect that the returns procedure will be simple, easy to execute, and result in the fast resolution of the return.

Products returning to the USA from Canada must be cleared through U.S. customs, so this should be taken into account when planning the process.

Conclusion

Though Canada is often regarded as like the United States, there are supply chain problems specific to each country, which differ. First, educate yourself regarding the Canadian market in addition to about supply chain issues and related transportation and logistics company practices. Find reliable third-party logistics providers experienced in intra-Canada transit, habits, and other difficulties and protected service with those who may commit to definite schedules and delivery dates that meet your requirements.

Find third party logistics providers that rely on engineering as they should enable you to have access to real-time business intelligence, supply chain management along with other tools. Having access to real-time information, including monitoring of shipments, orders, and inventory management is crucial to the success of your e-commerce advertising effort.

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