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Canadian retailers can expect a substantial growth in online sales, according to the results of Ernst & Young's Global Internet Retail Survey*.
The survey, which looked at the online retail habits in six countries*, also found that Canada shows the most promise for conversion of non-buyers to buyers, with 82% of non-buyers planning to purchase something on the Internet in the next 12 months.
High shipping costs (46%), needing to try on items for fit (34%) and high prices (29%) topped the list of concerns for Canadian consumers.
Interestingly, of the options given, Canadian buyers listed credit card information being stolen as their lowest concern (19%).
Here are some survey highlights:
Online shopping dollars
- 15% of Canadian shoppers online made 10 or more purchases in 1999; U.S. numbers were even higher at 39%.
- Canadian online shoppers spent an average of $770 online in 1999.
- 30% of those Canadians who shop online spent more than US$500 in 1999.
- Report confirms there is a correlation between income level and number of purchases online. The greater the income, the larger the amount of purchases.
- 18% of Canadian purchases were impulse purchases.
- Growth in online sales has been aggressive to date. As the report indicates, with 39% of Canadian housholds online, but only 9% shopping via the Internet, the opportunity for additional growth in online sales is tremendous.
Going once, going twice . . . the appeal of online auctions
- 32% of those interviewed were buying at online auctions.
- 53% of those who buy at auctions expect to increase their purchases, indicating future growth.
Plans for the future
- 85% of Canadian non-buyers plan to purchase something off the Internet in the next 12 months.
- Canada shows largest potential for non-buyers intending to purchase in the next year.
- It's estimated that by 2002, U.S. online consumers will spend 1/3 of their total shopping money via the Internet.
- American online consumers, who now spend 15% of their shopping money over the Internet, will more than double to 36%.
Did you know?
- Amazon, Chapters and eBay are the top three favourite sites for Canadian shoppers.
- The Internet retailing rate grew in 1999. Consumers making frequent purchases online number 39% in the U.S., 20% in Australia, 15% in the U.K. and France and 7% in Italy.
- Top three concerns for Canadian consumers: high shipping costs (46%), need to try on for fit (34%) and high prices (29%).
* In October and November 1999, Ernst & Young surveyed consumers and online retail companies in six countries: Canada, the United States, the UK, Australia, Italy and France. The Ernst & Young's Global Internet Retail Special Report looked at people's online retail habits. 672 Canadians were surveyed online.
Nesreen Sarras is a staff writer with CanadaOne.Com.
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