With a mission to inform, empower, celebrate and advocate for British Columbia's current and aspiring business leaders, BCBusiness go behind the headlines and bring readers face to face with the key issues and people driving business in B.C.
Issue link: http://digital.canadawide.com/i/364562
Our E-Comm Conundrum R e T a I l Canada lags behind its competitors in the online retail world. How can we—and why should we—play catch-up? by Kristen Hilderman Geoff Le Quelenec Director of information technol- ogy, Retail Council of Canada The U.S. has a broader distri- bution network and can put product in hand quickly and at low cost. In Canada, the cost and time to ship outside a few urban centres is much higher. Free shipping, free returns and same-day ship- ping are integral and cannot be easily replicated. Kyle Vucko CeO and co-founder, indochino Apparel inc. The U.S. has a larger pool of companies from which to pull examples, but what we're doing up north is something to be proud of too. There are a number of Canadian companies doing innovative e-commerce, from Lululemon to Frank & Oak. Why is Canada so far behind the U.S. and other countries in e-comm uptake and growth? E-comm typically represents a small slice of a retailer's revenues, so why is it so important? What are the biggest e-comm opportunities for local retailers? The highest costs for a retailer are real estate and staff. E-commerce promised to reduce or eliminate both. An in-store shopper who converts to online is less likely to go back. Remember that e-commerce can drive local traffic. Use location-based search, social media and search engine op- timization to drive not only online sales but also foot traffic to your physical loca- tion. Your online presence should be complementary to your in-store promotion, not separate from it. David Ian Gray Owner and principal, DiG360 Consulting Ltd. On the demand side, Cana- dians have relatively easy access to almost any physi- cal retailer that exists in Canada. Barriers to foreign offerings have been duties and delivery. On the supply side, we simply have not had a critical mass of strong Canadian e-commerce sites. It signals to the customer base that the retailer is modern and providing options. Better web chan- nels can hit comparable numbers to a single store, at lower cost. Consider offering extended stock to what can't fit in the store (with free shipping and minimal time lags). If the product is differentiated, retailers can find a broader market over distance, especially for exclusive items. This requires careful planning around logistics, packing and returns. ■ The biggest opportunity for retailers is to get online. It's easier than ever for brands to get online quickly and do it well. Companies like Squarespace and Shopify enable you to build a quality e-commerce site in days, so even the smallest retailer can create a great omni- channel experience. While many established retailers remain primarily off- line, new retailers will start online or become meaning- ful online quickly. Custom- ers know that and go online to shop the latest trends. bCbUSiNeSS.CA September 2014 BCBusiness 25 $175 bIllIOn in retail sales will have shifted out of stores to online in the U.S. be- tween 2007 and 2015. of the world's top 50 e-tailers are based in the U.S. Not one is based in Canada. 56%