Webinar O Canada Why Is Your Online Shopping

Webinar O Canada, Why Is Your Online Shopping Experience So Bad, Eh? Peter Sheldon, Principal Analyst May 8, 2013. Call in at 12: 55 p. m. Eastern time @peter_sheldon

Add to car t on. . . ) (coming so There’s something amiss.

Canadian retailers still have their heads in the sand.

Canadians have many grumblings when it comes to shopping online in Canada Source: Canadian

The idea that Canadians don’t buy online because they want to “see and try”

Let’s take a closer look at the big issues 1. 2. 3. 4. 5. Omnichannel Discovery, search, and price transparency Shipping, pickup, and returns Payments The lure and realities of shopping from the US © 2013 Forrester Research, Inc. Reproduction Prohibited 6

Omnichannel is the convergence between physical and digital retail.

Omnichannel excellence depends on three things Internally facing initiatives Explanation Customer-facing operational excellence Initiatives such as in-store pickup and returns in stores These efforts are valuable to shoppers who browse and buy across channels. Marketing and customer database management Synchronization of messaging across channels Leveraging shopper information to create relevant offers and programs Organizational structure Reduction of channel conflict and efficiencies shared across different parts of an organization to drive overall company sales Few, if any, Canadian retailers excel in all three. © 2013 Forrester Research, Inc. Reproduction Prohibited 8

Canadian shoppers crave “buy/reserve online” and “pick up in-store” options Source: Canadian Online Shopper

Because they hate these!

Future Shop and Best Buy are redefining customer expectations for pickup in-store. 11

Canada Post gives consumers “other” pickup options.

In the store, customers have a new set of expectations when it comes to service.

Today’s associates must be empowered to “digitally” serve the customer © 2013 Forrester Research,

Let’s take a closer look at the big issues 1. 2. 3. 4. 5. Omnichannel Discovery, search, and price transparency Shipping, pickup, and returns Payments The lure and realities of shopping from the US © 2013 Forrester Research, Inc. Reproduction Prohibited 15

In the US, 30% of consumers start their product research on Amazon. com In Canada, only 11% of consumers rely on Amazon. com for product research. Source: April 24, 2013, “The State Of Canadian Online Retail — 2013” Forrester report © 2013 Forrester Research, Inc. Reproduction Prohibited 16

However, when it comes to price comparison, Amazon. com is the go-to place for

Let’s take a closer look at the big issues 1. 2. 3. 4. 5. Omnichannel Discovery, search, and price transparency Shipping, pickup, and returns Payments The lure and realities of shopping from the US © 2013 Forrester Research, Inc. Reproduction Prohibited 18

Free-shipping thresholds can be both a friend a foe Source: Canadian Online Shopper Survey,

Ubiquitous “free shipping” may not be here yet, but it’s coming. . . ©

Canadians are more interested in flexible pickup options than expedited shipping Source: Canadian Online

43% of Canadians demand free returns as a mandatory condition of shopping online Source:

But yet only a handful of Canadian online retailers are fulfilling this desire ©

Let’s take a closer look at the big issues 1. 2. 3. 4. 5. Omnichannel Discovery, search, and price transparency Shipping, pickup, and returns Payments The lure and realities of shopping from the US © 2013 Forrester Research, Inc. Reproduction Prohibited 24

Adoption of Pay. Pal and Interac Online is growing among Canadian retailers © 2013

But retailers must not forget the importance of enabling omnichannel payment options © 2013

Let’s take a closer look at the big issues 1. 2. 3. 4. 5. Omnichannel Discovery, search, and price transparency Shipping, pickup, and returns Payments The lure and realities of shopping from the US © 2013 Forrester Research, Inc. Reproduction Prohibited 27

When it comes to online shopping, the grass is greener across the border. 28

Two-thirds of Canadians have previously shopped online at a US retailer But why? Source:

When Canadians can’t find products online in Canada, 38% simply buy from the “outside”

A third of Canadian shoppers that buy from the US are happy to play tax-and-duty roulette. 31

34% of Canadians will only shop from a US site if they can estimate

If the shipping is free, 87% of Canadians are quite happy to wait more

US retailers have gone to great lengths to meet the needs of the Canadian

Today, it’s difficult for consumers to determine if a site is genuinely Canadian or

Canadian merchants need to smarten up before it’s too late.

Thank you Peter Sheldon psheldon@forrester. com http: //blogs. forrester. com/peter_sheldon Twitter: @peter_sheldon