Amazon takes on Canadian Online Retail

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Tuesday Chutter

Canadian online retailers are facing the consequences of not keeping up with ecommerce developments as Amazon–the world’s largest online retailer, pushes in to the Canadian market by adding groceries to their expanding field of products. Canadian grocers bring little competition by offering minimal online sales if any; the next runner up to Amazon who offers 15,000 non-perishable food items, is Wal-Mart Canada at 2000 items.

Automotive products are another area where Amazon is putting the pressure on. They will offer two-hundred times as many auto products as Wal-Mart, while Canadian Tire currently offers only tires online.

This expansion adds to their entrance into the online toys and games market this past June, which will be felt by brick and mortar stores as well as online competitors such as Toys “R” Us this holiday season. Original art and limited-edition prints are another product introduced by Amazon this year, catering to upper end spenders who may have lost confidence in ebay–as suggested by a poor holiday forecast due to the government shutdown.

Amazon is sounding the wake-up call for stores big and small who have disregarded the ecommerce transition. Online accounts for 4% of current retail spending in Canada, and is expected to grow to 40% in the next 12 years. Laying the groundwork early for this kind of growth keeps retailers in the game.