E-Commerce – what’s that eh?

Because I disdain the exorbitant prices, lack of selection, long commute/pricey parking associated with shopping at the mall – I tried shopping online.

But when I was shopping on Zappos, about to select my shipping address: I failed to locate any Canadian provinces. And I found out on April, 2011, Zappos shut down their Canadian services. Why? Some brands didn’t want to distribute in Canada, Canada post charges high rates, a lack of control shipping across the border, and complicated logistics.

E-commerce encompasses all sorts of transactions including: airline tickets, banking, bill paying, online pharmacy, group buying (groupon) and while statistics may point that e-commerce is soaring in Canada, the clothing retail sector has been slow to adapt and the gap between Canadian and US e-commerce is huge.

I think there’s prime opportunity for retail E-commerce in Canada – the demographic is technologically inclined and educated and infrastructure is available and competition is low. The main points of a Zappos business model are free shipping, discounts for buying online, an intuitive and easy to use online interface, and the ability to return the merchandise either shipped (or to any store). I think there can be a successful business if one can adapt that business model to be profitable in the context of the geography, law and culture of Canada.

 

 

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