ecomvan meetup: the need for speed—growing canadian e-commerce

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THE NEED FOR SPEED: GROWING CANADIAN E-COMMERCE

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Today

What’s happening in Canadian e-commerce? 1

Removing roadblocks in the customer experience2

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E-commerce is outpacing traditional retail

Growth in online retail sales in 2015

25% 36%of shoppers said they spent

more online as compared to in store in 2015.

of shoppers said that they intend to purchase more

items online in 2016.

Source: 2016 Canadian Online Shopper Study, CPC 16-202, April 2016

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E-commerce high growth markets

Source: YOY Parcel Volume Growth - January – December (2014 and 2015). Data retrieved from 2,923 Canada Post e-commerce customers.Note: E-commerce growth figures adjusted to reflect organic growth activity and seasonal variations.

Growth in e-commerce

in Canada for 2015

15%

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Industries driving 2015 e-commerce growth

Mass Merchant

17%

Fashion

22%

Sporting goods & Outdoor

31%

Note: E-commerce growth figures adjusted to reflect organic growth activity and seasonal variations.

Source: YOY Parcel Volume Growth - January – December (2014 and 2015). Data retrieved from 2,923 Canada Post e-commerce customers.

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78% of Canadian households are now shopping online

Source: January 2014– December 2015 Data retrieved from 2,923 Canada Post domestic e-commerce customers

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42%

Occasional(2-6)

13%

Frequent(7-12)

34%

One time

Note: Frequency figures indicate the percentage of Canadian households that received e-commerce deliveries in the past year

4%

Hyper(25+)

8%

Power(13-24)

Source: January 2014- December 2015 Data retrieved from 2,923 Canada Post domestic e-commerce customers

Canadians are shopping online with greater frequency

of Canada Post’s total e-commerce deliveries were delivered to these households in 2015.54%

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21%

2014First-time/One-time buyers

2015Frequent buyers

First time buyers are converting to frequent shoppers

Note: Frequency figures indicate the percentage of Canadian households that received e-commerce deliveries in the past year

Source: January 2014- December 2015 Data retrieved from 2,923 Canada Post domestic e-commerce customers

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Hyper shopping households

Source: Data retrieved from 2923 Canada Post e-commerce customers 2014 to 2015. Hyper shoppers – households that purchased 25+ times in 2015

38%

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Powering your e-commerce operations for success

Fulfillment DeliveryTracking Returns Customerloyalty

ShopAcquire shopper

Buy

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Does your checkout drive conversion?

Roadblock #1

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Abandoned cart – upfront shipping costs

not provided

Checkout challenges impact conversion

Abandoned cart – upfront shipping costs not provided.

13%

Abandoned cart – shipping costs too high.

64%

Expected Delivery Dates drives their decision to complete the purchase.

32%

Using shipping to drive sales

Providing visibility Managing delivery expectations

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Provide shoppers the visibility they crave

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Offer free shipping Offer flat rate shipping Use a tiered pricing strategy

56% 20%24%

Among our top 100 e-commerce customers

Source: Online Shopper Sensitivity to Shipping Costs, CPC 15-214, September 2015

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50%

Free shipping is king

Will have items delivered to a post office to avoid shipping costs.58%

Will sacrifice speed.66%



Drop in conversion rates

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Showcase the expected delivery date

Bringing it all together

Identify the delivery carrier

Round out your delivery options

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Can you serve the need for speed?

Roadblock #2

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How long are shoppers willing to wait?


If they received free shipping 8 days

If they paid for shipping5 days

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Expectations are rising...

16% of Canadian online shoppers abandoned their cart due to longer delivery times.

51% of Canadian online shoppers would shop more frequently if shipping were faster.



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1 Day 2-7 Days1-3 Days2 day ground shipping across Canada

Source: YOY Parcel Volume Growth - January – December (2014 and 2015). Data retrieved from 2,923 Canada Post e-commerce customers.

Reaching growing markets faster

BC

AB

SK

MB

ONQC

NSNB

NL17%

8%

9%

11%

17%

10%

14%

7%

13%

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38%

And the market has recognized the demand

Ship From Store

35%

Source: Canadian brands take the next step into omni-channel retail. Canada Post-OSF-Magento White Paper July 2015

Up to 25% of shoppers may be diverted to the

store if free in-store pick up is available.


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Delivered TonightTM

We’ll deliver to you in the same day

Order in the morning

Same day delivery as a differentiator

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Does your final mile experience deliver?

Roadblock #3

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of Canadian households can have no one at home during the day to receive deliveries.

35%

48%

Source: Consumer Delivery Preferences, CP 14-206, August 2014

of frequent online shoppers would purchase more items online* if provided with delivery options.

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Expand your retail footprint

19% of frequent online shoppers

would ship an item directly to a post office if given the option at

checkout!

✓ FlexDeliveryTM

✓ Delivery to Post Office


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Transforming the final mile

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The Post Office of the future

Drive-thru parcel pickup A fitting room Extended hours

All-in-one self-serve shipping station Self-serve vending kiosk

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Is your returns process driving away shoppers?

Roadblock #4

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Returns matter – it is all about conversion

of shoppers abandoned their purchase over concerns about the returns policy.18%

of shoppers unlikely to purchase from the same retailer again after a negative returns experience.21%


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Drive the perfect returns experience

Offer easy options for getting the item to the delivery carrier

Provide the ability to return to store

Offer free return shipping Include the return label in the original shipment


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Remove roadblocks to expedite growth

Optimize checkout for conversion

Equip for speed Enhance the final mile experience

Enable a positive returns experience

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Canada Post E-commerce Innovation Awards

What could your business do with up to $100,000 in free shipping?

Apply for a chance to win amazing prizes – and to be recognized as a leader in Canadian

online retail.

Deadline to apply- May 27th 2016

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Danielle Doiron E-commerce Market Development [email protected]

Annik Lefebvre Business development e-Commerce Vancouver

[email protected]

mailto:[email protected]

mailto:[email protected]

ecomvan meetup: the need for speed—growing canadian e-commerce

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