Canadian e-commerce tastes evolving

TORONTO, Ontario—While a growing number of Canadians are shopping online this holiday season, most don’t appear ready to give up their in-store experience, even for products purchased online.

According to a new study commissioned by Purolator and conducted by Forrester, when going online to purchase an item that is unavailable at a local store, 73 percent of Canadian consumers said it is important for retailers to offer the option of having the item shipped to the store for pickup instead of home delivery.

In the past six months, nearly a quarter (23 percent) of customers who made online purchases have opted for in-store pickup. The study also found retailers risk losing up to 17 percent of customers to competitors if they do not offer the convenience of a ship-to-store option.

“Canadians want the best of both worlds when it comes to online and in-store shopping,” said Ramsey Mansour, vice-president, marketing, Purolator. “A growing number of online shoppers enjoy the convenience of researching products, comparing prices and purchasing products online, but prefer the traditional physical shopping experience that only in-store pickup provides. Some retailers have begun to cater to these omnichannel shoppers by providing a smooth, seamless and convenient shopping experience across all their channels – in-store, online and via mobile.”

According to the study, Canadian e-commerce retailers have an opportunity to capitalize on additional selling opportunities created by the increased foot traffic of those coming to the store to pick up their orders.  Of those surveyed, 63 percent would be influenced to purchase other items in the store while picking up an online purchase if they were offered a special deal or in-store discount.

Along with in-store pickup of online purchases, offering in-store returns for items purchased online is another way for retailers to generate more store traffic. If the return shipping costs of online purchases are not covered, 60 percent of consumers would prefer the convenience of returning the item to the nearest store. Even if return shipping is free, 30 percent of customers would rather be able to return the item to the store.

“In addition to promoting sales, ship-to-store can help retailers drive down overall supply chain costs,” added Mansour. “With ship-to-store programs, customer orders can be packaged with restocking or other bulk shipments, making ship-to-store a versatile tool for retailers.”