Free Shipping Propels Canada’s Love For Online Shopping

By now, it’s probably unnecessary to state that Canadians love to shop online. The Canadian POS Corporation Blog has been exposing that truth for quite some time. But what makes Canadians love online shopping so much? We’ve often attributed the fact that it’s an incredibly convenient way to make purchases as one of the top reasons it’s so popular. Who wouldn’t love to sit at home in their pyjamas while going shopping?

Online shopping eliminates the need to drive to the mall, search for parking and wait in long line ups to pay for purchases. This is especially beneficial during the huge end-of-year holiday shopping rush. It should come as a surprise to no one that there is a long list of reasons that Canadians love to shop online. But what may come as a surprise is the number one reason we all love to use the internet to make our purchases.

According to Canada Post, it all comes down to free shipping. According to their website, “Canada\’s online shoppers love a bargain when it comes to shipping fees, so much so that they will sacrifice fast shipping for free shipping, buy from a competitor who offers free shipping or even delay their purchase because they expect a merchant to offer free shipping soon as part of a promotion.”

In a recent study of over 4,000 online shoppers, Canada Post discovered that merchants’ shipping strategies play integral roles in whether or not customers make purchases from them. According to the report, nearly two-thirds of online shoppers abandon their carts due to shipping costs being too high. Naturally, one of the great benefits of online shopping is being able to have items shipped directly to your home. But, Canadians feel that it’s has to be worth the cost.

Canada Post notes that “70 per cent of shoppers would shop more often with a merchant if they were offered free shipping with a minimum purchase.” Jennifer Mach works in Strategy & E-commerce Market Development for Canada Post. “This research gave us incredible data, which we\’ve used to offer small- and medium-sized merchants strategies and tools they can apply as they create, adjust or even experiment with their shipping strategy,” she is quoted as saying.

The nation’s leading parcels company also discovered a number of other key findings including the fact that conversion rates drop by as much as 50 percent if free shipping is not offered. As well, 66 percent of online shoppers prefer free shipping over fast shipping. “Of Canada Post\’s top 100 e-commerce merchant customers: 56 per cent offer free shipping (48 per cent require a minimum purchase, and 8 per cent offer free shipping with no restrictions),” they report.

As mentioned earlier, Canada Post also reveals that online shoppers are significantly swayed by the offer of free shipping with a minimum purchase. Their study found that such an offer can tempt anywhere between 40 and 60 percent of shoppers to top up their carts to qualify for free shipping. At Canadian POS Corporation, we’re very aware of the growing trend that is online shopping in Canada. The question is “are you offering this option to your customers?”

We can help you to take advantage of Canada’s love for online shopping today! For more information about our fantastic e-commerce solution, call Canadian POS Corporation at 1-877-748-2884 or email us at info@localhost.