Why Canada`s close by and far away

With the web making virtually anywhere a potential sales target for retailers, nearby Canada is often seen as an easy hop for American e-retailers seeking to grow their business across borders. Not so fast, says Patrick Bartlett, president of Canada Post Borderfree -- marketers are better off considering significant differences in the U.S. and Canadian markets along with the many similarities.

For one thing, while a U.S.-based retailer’s brand messaging may have saturated the home market, Canadian consumers have not had the same exposure, says Bartlett, whose company offers technology and services to help U.S. marketers sell in Canada. “They may have some knowledge of your brand, but you probably want to spend more time with Canadians telling them about your brand promise,” says Bartlett. U.S. marketers also may not stop to consider how they are perceived in a country that on the surface, seems so similar to home turf – and how understanding the Canadian’s view of the U.S. can turn into a marketing advantage.

Buying online is one thing; buying online from Americans is another, says Bartlett. Canadians who buy across the border in the U.S. know they will have to deal with the issue of price and currency conversion and figuring out shipping and handling costs; experience has made it a part of their mindset in a way that’s not top of mind for Americans who rarely have to look outside their home country to find any consumer product. As a result, part of Canadians’ perception of the quality of the shopping experience at an American online retailer is the extent to which the merchant makes this easy for them versus leaving it to the Canadian shopper to reconcile the differences himself, according to Bartlett.

“American merchants have done a wonderful job of working on the buying experience for their consumers. When they go to international markets, they may leave it to the consumers to reconcile these problems and differences. Then they wonder why they aren’t as successful on the international markets,” Bartlett says.