In a November 2009 study conducted by Ipsos Reid for Visa Canada (Figure 2.9), additional insights highlight some of the barriers for consumers as it pertains to cross- border shopping.
Figure 2.9: Attitudes and Barriers Towards Online Cross-border Shopping
I don't want to pay extra for shipping
Not knowing the total cost
American sites...offer wider selection
Shippingfees from U.S. retailersaretoo high
Includingshipping fees, cheaperto buy from U.S.
U.S. retailerswon't ship to Canada
0% 25% 50% Source: 2008 Canadian Consumer E-commerce Study by Burak Jacobson for Visa Canada
The study also revealed that Canadians who had previously shopped at U.S. online retailers, were more likely to agree that U.S. retail sites offered more selection (82% vs. 72%), and that it was cheaper to buy from American sites (59% vs. 43%).
Directional information related to some of the other questions posed earlier would be available at sites such as the following:
While these sites provide additional information on the Canadian online market, a more in-depth analysis of these questions, may require you to commission primary research.
However, before you venture down that particular route, you may wish to contact e-commerce specialists in the Canadian space to ascertain what level of information they have on-hand, or for them to propose alternative sources.
In closing, the Canadian online consumer is diverse, demanding and can be desirable for U.S. retailers looking to venture into this market.
As a retailer, don’t fall into the trap that Canada is the 51st U.S. state. If you do, you are likely to be under-whelmed by their response if you do not take the time to understand their needs relative to your capabilities.
Visa e-commerce cross-border handbook for U.S. retailers
Copyright 2010 Visa. All rights reserved.