The Canadian ecommerce industry is booming.
The Canadian marketplace for the ecommerce business is growing at a rate of 30 per cent per year, according to research from ecommerce giant, eCommerce Insights.
That is the fastest rate of growth since 2007, when ecommerce accounted for a third of total commerce in Canada.
According to ecommerce data firm, ecommerce marketplaces, the industry grew at a compounded annual growth rate of 23 per cent.
But the growth has slowed recently, as ecommerce companies have struggled to retain talent.
For example, online marketplaces such as eCommerce Insider and eCommerce Nation reported a decline in revenue in the first quarter of this year, due to a slowdown in international sales.
That has led to a drop in the number of merchants on the platform.
That means a lot of merchants are losing business to the other side of the world.
There is also a slowdown at the retail end of the e-commerce market.
Retailers are struggling to keep up with online orders as they are having to process online orders in-store rather than by phone.
According a survey by eCommerceNation, a marketplace that provides industry insights, only 1 per cent of retail customers ordered online.
In contrast, 1 in 5 Canadians have done so.
That’s a significant loss for a marketplace like eCommerceInsights.
The company says the online market has grown by 40 per cent since it started tracking it in 2008.
The report also says the eCommerce industry is growing faster than the global economy, which is estimated to be at 6.3 per cent annual growth.
In 2018, the global ecommerce economy was estimated at $7.3 trillion.
That was up from $6.5 trillion in 2017, according the research firm.
“In a global market where we are seeing the emergence of ecommerce as a competitive force, it’s an important part of that growth story and it’s going to continue to grow,” said David MacLean, CEO and co-founder of eCommerce Analytics, in a statement.
eCommerce is a rapidly growing sector in Canada and has already surpassed the Canadian dollar in value.
“The online economy is growing rapidly, and it is poised to continue its trajectory,” MacLean added.
As well, the number one ecommerce product on the Canadian marketplace is apparel, which has grown over the past two years to $1.7 billion in 2018.
“With an increase in apparel and shoes sales, the ecoms is a good indication of the ongoing trend in the industry,” said John Dube, director of eMarketer Canada.