Sales will exceed $100 billion! Potential market attracts a large number of sellers

North America is a battleground for cross-border e-commerce, where residents generally have a high level of consumption and a mature market. After the epidemic, North American e-commerce has grown rapidly, and many sellers are eager to try.

After opening its US site, Temu, a new traffic dark horse , quickly turned its attention to Canada, where e-commerce spending ranked second in the world. After the epidemic, consumers who pursue cost-effectiveness prefer online shopping, and the country's online e-commerce has many popular categories.

Rapid growth, Canadian e-commerce sales will reach $104.77 billion

The United States and Canada are the main countries in North America , and the region has always been in a leading position in terms of economic strength and consumption level . In 2022 , the e-commerce penetration rate in North America reached 77%, and it is expected to grow to 85% in 2025 .

In recent years, the US e-commerce market has become saturated, and cross-border sellers are fighting fiercely in the red ocean. As one of the top ten e-commerce markets in the world, the Canadian e-commerce market has great development potential, with strong shopping demand among residents, who are mostly accustomed to online shopping. According to data, it is estimated that by 2025, there will be more than 30 million e-commerce consumers in Canada, accounting for more than 80% of the country's total population.

According to eMarketer data, Canada's e-commerce consumption grew by 75% in 2020, ranking second in the world. In 2021, Canada's e-commerce market maintained a growth rate of 26%, 4% higher than the US growth rate during the same period.

eMarketer predicts that Canada's e-commerce sales will continue to grow in 2023 and are expected to reach US$104.77 billion by 2025.

Canada and the United States are close to each other, and the two countries have similar consumption habits. Many cross-border sellers with US business will also consider entering Canada . Temu, a dark horse in traffic, also chose this place as its second stop after the United States. Currently, many sellers have received a notice from Temu's investment manager stating that the platform has opened a Canadian site.

Hot-selling product list is coming, consumers are more concerned about price

While attracting traffic platforms with its advantages, the Canadian market has also attracted the attention of a large number of sellers. Sellers trying to enter this market to make money need to pay attention to the three major characteristics of Canadian cross-border online shopping consumption in 2022.

1. Value cost-effectiveness: Under inflation, more and more Canadians tend to buy products with higher cost-effectiveness and choose to shop online. When shopping online, 48% of consumers value price transparency.

2. Mobile purchases : 63% of consumers will conduct cross-border online shopping. In terms of method, 66% of consumers choose to shop online via mobile phones, and 56% of consumers choose to shop via laptops.

3. Multiple categories are popular : Fast fashion is the most popular category among Canadian online shoppers, accounting for a market share of US$7.07 billion, followed by electronic products and books. In addition, clothing and toys are also very popular, accounting for 35% and 16% of the purchasers respectively. Canada has a long winter, and winter products are hot in the local market, such as skis, ski suits, and ski socks are all hot-selling items.

For sellers trying to enter the Canadian market, maintaining price transparency and choosing the right hot-selling products that meet their needs are the first steps to success. However, it is worth noting that the country is vast and sparsely populated, and geographical factors lead to difficult, expensive, and slow logistics. Due to the unsatisfactory logistics timeliness, Canadians' purchase sources are mainly concentrated in the United States and China, and most of the goods from China to Canada are transshipped through the United States.

In this context , China Southern Airlines Logistics and Jiayou International formally signed a strategic cooperation agreement on February 23. The two parties will make every effort to deepen strategic cooperation, jointly provide customers with customized door-to-door logistics and transportation services from China to Canada, and promote trade between China and Canada.

On the basis of the good cooperation in the early stage, the two parties formally signed a strategic cooperation agreement to develop the China-Canada market. It is planned to open a regular all-cargo flight from Guangzhou/Qingdao-Vancouver-Toronto-Qingdao from March 2023. Based on the long-term stable trunk line resources, the port transshipment, intercity trunk line transshipment and last mile capabilities will be improved to jointly build integrated logistics self-control capabilities. This cooperation will promote the common development of both parties, realize resource sharing, mutual benefit and win-win results, give full play to their respective advantages, and promote the vigorous development of cross-border e-commerce and aviation logistics.

The high cost-effectiveness of Chinese products just meets the needs of Canadians . If combined with high-quality and low-cost logistics, Canada's e-commerce purchases from China may usher in a new growth. To learn more about Jiayou International's all-cargo aircraft, please click to read the original text.

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