December 10, 2004, 12:00 AM

Canada online retailing is on a growth curve, eMarketer says

A new report from eMarketer Inc. projects that e-commerce revenues in Canada will reach nearly $3.8 billion this year. Next year, the market will increase 25% to $4.7 billion, then another 22% in 2006.

Kurt Peters

Executive Editor

 

A new report from eMarketer Inc. projects that e-commerce revenues in Canada will reach nearly $3.8 billion this year. Next year, the market will increase 25% to $4.7 billion, then another 22% in 2006.

“Canada is among the top countries worldwide in Internet usage and broadband adoption rates, but to date that has not translated into e-commerce leadership,” said eMarketer senior analyst Jeffrey Grau, author of the report Consumer E-Commerce in Canada: Firing Up the Internet Economy Growth Engine. “The country’s slow adoption of e-business technology combined with regulatory complications that invariably come when purchasing goods from foreign entities have created an unfavorable environment for US firms trying to engage in Canadian online commerce.”

To encourage Canadians to purchase online, Grau suggests US retailers establish Canadian subsidiaries that would allow consumers to avoid tariffs, or set up joint ventures with Canadian retailers that leverage US online expertise but maintain Canadian branding.

 

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