How to find the best e-commerce deals in Canada
Online retailers, including those with a large online presence, often see a steep drop in their revenue over the course of the year, according to a new report by the research company eMarketer.
In 2018, online retailers experienced a 10 per cent drop in sales as compared to the same time in 2017, according the report.
The drop was particularly pronounced in Canadian markets such as Toronto and Montreal, which were the top destinations for online shopping during the year.
It also led to a 15 per cent decline in e-tailer revenue, compared to 2017, and a 19 per cent reduction in ecommerce sales in the United States.
According to the report, the online retail industry is facing challenges in a number of areas.
“The industry has been hit hard by changes in the online marketplace,” says Craig Moffatt, senior economist at eMarketers.
Many online retailers are losing customers in favour of cheaper competitors, he said.
E-commerce revenues declined by 8 per cent in 2018, compared with the same period in 2017.
More recently, the industry has faced the threat of competition from more profitable companies, such as Amazon, Netflix, and Google.
While the e-store industry has experienced strong growth in 2018 due to e-book sales, online retail is seeing a drop in the number of shoppers due to lower-than-expected sales and a lack of new online deals.
This has led to the industry suffering a loss of market share from its competitors, such in the form of Amazon and Netflix, says Moffatt.
As a result, online businesses are facing a growing challenge from the ecommerce giants, and have to contend with the threat posed by online competitors, Moffatt says.
Despite this, the eCommerce industry continues to be one of the most profitable in Canada, and online retailers remain a significant part of the country’s economy.