Going Global? Start in Canada
U.S. retailers looking to grow their business globally may want to start with Canada, as a new report from Borderfree suggests Canada is a top market for U.S. retailers due to Canadians’ frequent tourism to the U.S. and familiarity with the country’s stores, brands and shopping experiences.
The study names Canada as the largest cross-border online market for U.S. retailers today, and identifies the country as Borderfree’s number one market for cross-border sales for U.S. retailers in 2013.
“Canadians know U.S. brands well and shop them frequently,” said Michael DeSimone, chief executive officer, Borderfree. “Between the country’s high Internet, mobile and social media penetration and an affluent population ready to spend, U.S. retailers looking to sell online to our neighbors to the north will find a ripe ecommerce marketplace. We’ve also found that targeted marketing efforts in Canada reap big rewards, as evidenced by the most the recent holiday shopping season, where U.S. retailers saw significant online demand from Canadian shoppers.”
It is important to note that Borderfree data shows Canadian shoppers spent 34 percent more daily on average during 2014’s holiday season than they did a typical shopping day the rest of the year, with a fivefold increase on Black Friday. Additional peak shopping days included Cyber Monday and Boxing Day.
For retailers looking to begin selling in Canada, Borderfree offers data on the average Canadian shopper and their preferences. According to the data, 85 percent of Canadian shoppers are women and have a median age of 41.7 years. Additionally, Canadians who shopped with retailers on the Borderfree platform spent an average of $136 U.S. dollars each last year. Also worth noting is that 45 percent of Canadian online shopping goes to U.S. and international sites, with average annual purchasing approaching $1,100 per shopper.