In 2007 the Canadian retail ecommerce only totaled about 12.9 billion USD, but over the next three years that number is predicted by eMarketer to grow by more than 10% annually. With Canadian business-to-consumer (B2C) ecommerce on the rise there is room for retailers and online store owners to get a piece of this rapidly expanding pie. But before you run out and begin marketing to Canadian consumers or developing a Canadian version of your site you will need to understand a few things about the Canadian market:

1. It Is Small
   As Jeffrey Grau, eMarketer Analyst, explains- “Until Canadian consumers show a larger appetite for buying big-ticket physical goods online, such as home furnishings and consumer electronics, the Canadian e-commerce market will remain small compared with other G-7 countries.” The Canadian market has traditionally been seen as the little brother of the French, German, Italian, Japanese, British, and American markets.
2. Physical Location Is Paramount
   While Canadian consumers are as likely as American consumers to go online and do product research, they are much more likely to purchase the item at a physical location. In fact, one important reason Canadians go online to retailer sites is to find store locations.
3. The Cost Is Higher
   There are not nearly as many Canadian ecommerce sites as American ecommerce sites because the cost of operating a Canadian site is about ten times higher for their respective market.
4. The Tax System Is Prohibitive
   The Canadian tax structure for online retail purchases reduces some of the cost advantage that Canadian consumers would otherwise enjoy shopping online instead of in-store.
5. They Buy From Their Own
   Canadian consumers would rather buy from retailers indigenous to Canada compared to foreign companies- even US based businesses that are still in close proximity.

Given the specifics of the Canadian ecommerce market, businesses in the best position to benefit from its expansion are Canadian-founded or Canadian-based businesses that can offer online selections, as well as a retail purchase location. The trend over the next few years will be a steady increase of Canadian retailers and small Canadian businesses in all industries opening online stores to tap into the steadily growing Canadian market and already booming American market to their south.

Looking to start a Canadian online business? Contact Volusion’s sales team today.

-Kate Pierce eCommerce Specialist

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According to eMarketer recent studies show that more than 40% of children aged 6-11 have visited a website they saw in a commercial after being given the simple instructions, “Please visit our website for more information.” Of those young viewers, 26.5% were between the ages of six and seven, 33.3% were between the ages of eight and nine, and 40.2% were between the ages of 10 and 11.

I. Why Are Children More Likely To Listen To Advertisers?

1. They’re excited about being online.
   Children are getting online earlier and earlier and are as excited about the privilege of being online as our generation was about getting to watch our favorite television programs when we were kids. In fact, of a sample of 5-8 year olds more than half reported that were already online. Kids already want to be on the internet- giving them a URL to go to just provides direction while they are there.
2. They’re not jaded.
   When it comes to sales pitches and gimmicks children are not jaded like adults. Because they have not yet been exposed to many online sales tricks they are much more trusting when they see or read something on a website. When a child is told to visit a particular website they do not have any reason to believe they should not go there or that it may not live up to their expectations. Some children may not even have an idea of what they will find when they get there- they just go because they are curious.
3. They’re quick to remember.
   Children seem to remember everything! Their highly observant minds make them great at remembering things like websites, brand names, product names, etc. Children can see an advertisement on television today and visit it in a week (especially if it is incorporated into a song or associated with a particularly memorable character).
4. They’re still learning.
   Children are eager to learn and experience new things, but they also hold onto the same old things that make them happy (think about the tattered old blankets and bears kids drag around for years). They may visit the same websites over and over to see if there is anything new but they also play the same games, read the same stories, and look at the same pictures. In this way, a fun well-designed site can be held onto by a child for many years.

II. What Does This Mean For Ecommerce?
Even if your company is not advertising on television or in other areas where kids can see your website, the abundance of children online these days has huge implications for the future of ecommerce.

1. There will be more ecommerce websites specifically targeting children.
   Expect to see more sites online in the upcoming months and years that are specifically designed for children. We do not just anticipate seeing more fun gaming-type sites for young internet surfers but also ecommerce sites (like www.weecanshop.com) that help children shop for gifts for loved ones and friends.
2. Sites that are already kid themed will be even more kid-friendly.
   It is getting more popular for kid themed sites to offer ways for children to view merchandise related to the entertainment aspects that they are attracted to online. By making it easy for children to correlate having fun and playing online with getting presents and gifts, it glamorizes the products and encourages them to ask for the featured toys and accessories. As these children’s sites develop, navigation menus will get easier and designs more vivid- attracting kids of all ages. Wish lists will probably become more widespread so that children can single out items that they like and view them later or share them with friends.
3. Children will be driving more purchase decisions than ever before.
   What children want children get. Think about grocery shopping with kids and they way they grab at cereals, candy bars, gum, and other novelties conveniently placed within the reach of their tiny arms from the floor. While some parents may continue to be disciplined about what they get their children, there will likely be a rise in sales of children’s toys and accessories online as some parents concede. Whether or not the total sales of children’s items increases though, it appears that the percentage of these types of sales conducted online will be higher than ever.

Anyone who has seen A Christmas Story can recall the iconic scene where Ralphie stands out in front of the store window peering in at the toy of his dreams- the Red Ryder BB Gun. Later, at home, he carefully slips an official ad for the BB Gun into his mother’s Look Magazine to subtly hint to her that he wants it for Christmas. With the rise in internet savvy children those days are over. By the time the holidays roll around next year you may find your child comparison shopping online and then get carbon copied on an email to Santa with your son/daughter’s holiday wish list, or texted by an online store letting you know which items your child wants to see in their stocking.

Thinking of starting an online store? Try Volusion.

-Kate Pierce eCommerce Specialist

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Social networks are more popular today than ever before, but what has been getting attention recently is the rise of a new type of social network. The highly specialized professionally developed social network is the newest trend in online communities.

I. Characteristics of the Original Social Networks

1. Mass Appeal
   The big social networks these days try to have a mass appeal- reaching all job seekers, all health care professionals, etc. Social Networks like Facebook and MySpace, for example, try to appeal to all young people regardless of location, income, interests, etc.
2. Broad Focus
   Since the original networks are trying to appeal to very large groups of people they do not have a specific focus other than to promote the sense of belonging to a community and encourage contribution to said community.
3. Content is Largely Participant Generated
   Broader social networks can flourish when the owners do not have to be responsible for the entire project of managing and maintaining the network. By relinquishing some control to participants, owners of these social networks can grow them into giant entities.

II. Characteristics of the New Social Networks

1. Highly Targeted
   New social networks are emerging that do not try to include everyone- in fact they find success in excluding some people. For example, a social network based around say  mothers with breast cancer is able to draw membership by offering relevant information about dealing with breast cancer and also a support network of other mothers or other families in the same situation. By excluding people suffering from say heart disease or multiple sclerosis the group can have a real purpose and develop a solid community because they are not trying to tackle too broad of a topic.
2. Niche Topics
   Many times social networks develop around niche topics- unifying people who previously felt like there were only a few people that shared their particular interest or characteristic. These networks can range from personal characteristics to leisure activities to past life experiences.
3. Content is Mostly Developed for Participants
   More specialized sites tend to draw more specialized opinions- in other words the opinions of experts. This creates an upward spiral- expert opinion draws more participants and as more participants join there is more pressure to have highly relevant expert opinions, and on and on. As Joseph Natale, Vice President at Children with Diabetes says, “You have to have great content, research and real-time updates so that people feel as though the site will offer something new and different every day. The content must be accurate and trustworthy.”

As a business owner there are great opportunities with each type of social network. By understanding the difference between the original social networks and the newer forming social networks you can properly structure your efforts and align your business for success in one or both types of networks.

I. Opportunities within the Original Social Networks

• Advertise to reach a wide diverse audience

• Sell your products (if the network will allow you to do so) to generate lots of new customers

• Get people talking about your company and products and your brand awareness can expand quickly

II. Opportunities within the New Social Networks

• Gain exposure with your core target customers

• Develop content to gain credibility in your industry

• Generate an intensely loyal customer base

For recent survey results regarding further benefits of utilizing social networks visit eMarketer.

-Kate Pierce eCommerce Specialist

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While Google has made a name for itself as a search engine it is emerging as the world leader in online mapping as well by leveraging the popularity of its search engine in promoting its ever-increasing map offerings. Tom Dahm, President of BridgePose Search Engine Marketing, writes in the Winter 08/09 Issue of Search Marketing Standard, “Google Maps now holds 22% of the local search market and should overtake the market leader, MapQuest, by the end of 2009.” Google’s soon-to-be map mecca is important to your business because of where the maps are placed on Google’s search engine. Certainly there is a tab at the top of the Google search page allowing users to search within maps, but what is more important is that these same maps are frequently inserted into the actual search engine results above the organic search results. This means that in some cases a well optimized Google Maps listing for a geographically specific business can actually be displayed before a search engine optimized website.

I. Get Listed
To get your store listed simply go to the Google Local Business Center, create an account, and add your listing. You will need to provide all relevant business information- name, address, phone number, etc. Google with then verify that your listing is legitimate by mailing a postcard to your location with a pin number that you will have to go back into your account and enter, or they will call your business and provide the pin number. Once your listing is verified it will begin appearing in Google Maps.

II. Fix Listing Errors
If you spot an error in your business’s listing you can edit it at any time with Google, but remember to be patient as updates can take a long time to filter through to your listing.

Occasionally multiple listings will appear for your business (commonly after your business has moved). You should always make sure to delete duplicates so that there is not outdated information online misleading potential customers.

A lesser known way of correcting errors in your listing is to contact Tele Atlas, which is the map provider on which Google bases their listings. Google draws geographical information from Tele Atlas and then adds layers of information over that basic listing from a variety of other online sources to give the most comprehensive listing for each company. Therefore, fixing an error with Tele Atlas does not guarantee that it will be fixed with Google, but it is a solid first step.

III. Optimize the Listing
Once you have your business listing on Google Maps and it is error-free you will want to take that next step and optimize it to try to drive traffic to your business. Here are some of Tom Dahm’s important tips to use for the most optimal Google Maps listing:

• Use key words in the business name and description
• Get customers to write positive online reviews
• Have local websites link to you
• Use a complete address so your proximity to the search area can be determined

-Kate Pierce eCommerce specialist

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Sites like Wikipedia, My Space, Facebook, Craig’s List, and eBay all rely on contribution systems. “But wait!” you may say “Facebook has never asked me to donate money.” With the Presidential elections and holidays over we seem to still have financial contributions at the forefront of our minds but there are other, arguably much more important, contributions in the business world. According to an article titled “The Contribution Revolution” in the October 2008 issue of the Harvard Business Review, many companies these days are relying on consumer provided information to augment or even create their whole site. Scott Cook, journalist for the Harvard Business Review explains, “User contribution systems aggregate and leverage various types of user input in ways that are valuable to others.”

I. Advantages of Contribution Systems

• No Cost
  Users will contribute if they think sharing their opinion is worthwhile and as a business owner you do not have to pay for any of that effort.
• Content Accumulation
  It is easy to accumulate a lot of content on an ongoing basis, especially if you have a lot of contributors because each individual only needs to contribute a small amount to achieve something much larger.
• Value Creation
  As additional contributions are made the site becomes more valuable in the eyes of fellow consumers, encouraging more people to contribute- leading to an upward spiral of content creation and popularity. This can be a huge competitive advantage over time.

II. Areas That Can Benefit From a Contribution System

Some websites run solely on contribution systems, whiles others user smaller more specialized contribution systems. Either way they can be beneficial both externally and internally to many businesses.

Customer Service
With a forum you can achieve more customer service efficiency because your customers can help each other and other potential customers with basic information regarding your products, company, and business practices. Instead of each customer calling in or emailing when they have a question or problem they can seek the advice and assistance of other customers, freeing up more of your time.
Product Marketing
By letting your target market comment on and discuss your products they are essentially selling your products for you in the most effective way possible. First of all, they know the target market very well because they are a part of that same demographic and understand what potential customers are going to want to hear. Secondly, their advice and recommendation comes off as far less “sales-y” than your words as the business owner.
Resource Expansion
If you count your customers’ resources as your own then you will have a larger and potentially very lucrative supply of resources to use. For example, Honda uses their cars with GPS systems on board to gather information about traffic patterns and conditions so that they do not have to do all of their own research for their GPS traffic tracker.
API
If you let customers share their designs and additions to your software you will have a much larger offering to extend to new customers without having to pour money into research and development.
Content
Letting customers contribute content allows for a more open exchange of ideas and helps to establish your company as a gathering place for information sharing. Early adopters will greatly appreciate this atmosphere and help fuel efforts for other customers down the road.
Employee Satisfaction
Instead of making all decisions unilaterally as the business owner and passing the information along to your employees let them tell you what they want and need. Not only will your efforts be more on base with what your employees are actually facing in their day to day jobs, but it will give them a sense of ownership.

III. Getting Your Business Started

• Use personal experience to guide your efforts
• Get enthusiasts to contribute
• Utilize young employees for fresh ideas
• Come to terms with having to relinquish some control
• Let customers start projects
• Try small experiments first to minimize risk and get experiments into the hands of customers quickly
• Make it easy for customers to participate
• Seek organizational buy-in only after getting some solid success

-Kate Pierce eCommerce Specialist

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