Some 12% of all e-commerce orders in Canada are never filled, about twice the average in the United States, according to a recent study conducted by the Boston Consulting Group.
The study, the Canadian Online Retailing Report, also observed that only 71% of such orders are filled completely.
The study also found that 96% of Canada’s online business was domestic, with Ontario, the most populous province, accounting for most of the e-commerce traffic. The research company valued the Canadian market as at about C$2 billion in 1999 and projected a value of C$3.6 billion for this year.
Although almost half of the 66 Canadian e-tailers surveyed in the first quarter perceived U.S. e-tailers as the primary competitors, an unfavorable exchange rate and lengthy shipping times caused by customs delays make shopping on domestic sites more attractive than shopping on American sites.
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