Karen Mazurkewich suggests that Rapid Response is the key to online success. Unfortunately a factor that weighs against online ecommerce is that Canadians are more wary about online security.
Online retail sales showed promising growth in Canada. Sales reached $12.6- billion in 2006 — a 61% rise over three years — according to a 2007 Statistics Canada report. Online sales increased only by 3% in 2008, says the Raleigh, N.C.-based media marketing company Sage Works, but are up 9% for the first eight months of 2009.
Canadians have not embraced the online shopping model with the same verve as their U.S. counterparts. Fear of credit card fraud is an issue. Darrell MacMullin, general manager PayPal Canada, says “Canadians have one of the highest sensitivities globally when it comes to security.”
Nevertheless some online stores have achieved remarkable success including the following:
- online retailer WineOnline.ca
- RedFlagDeals.com, for online bargains in Canada
- ssense.com, fashion retailers
Raman Kashyap, owner of cybershopping.ca, suggests that for success, companies have to be very niche-oriented and have strong social networking programs. If they can also still any credit security concerns and provide rapid response service, they should have it made.
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