Canada Consumers Identified as a Top Target for U.S. Retailers

canada-flag-button-200U.S. retailers seeking to grow business with online shoppers across country borders should look to Canada, according to a report from Borderfree, a cross-border ecommerce solutions provider.

Canada scored five out of five possible “shopping carts” on the Borderfree Index (BFI), indicating that it is an “ideal market” for cross-border ecommerce.

The report, part of Borderfree’s series of intelligence pieces on high-interest markets for ecommerce, points to Canada as a top market for retailers to tap into due to Canadians’ frequent tourism to the U.S. and familiarity with U.S. stores, brands and shopping experiences.

More than 23 million Canadians visit the U.S. each year, driving demand for U.S. goods, inexpensive shipping and relatively low import duties when they return home[1]. Canada is the largest cross-border online market for U.S. retailers today presenting a healthy opportunity for international expansion, and was Borderfree’s number one market for cross-border sales from U.S. retailers in 2013.

“Between the country’s high Internet, mobile and social media penetration and an affluent population ready to spend, U.S. retailers looking to sell online to our neighbors to the north will find a ripe ecommerce marketplace,” says Borderfree CEO Michael DeSimone. “We’ve also found that targeted marketing efforts in Canada reap big rewards, as evidenced by the most the recent holiday shopping season, where U.S. retailers saw significant online demand from Canadian shoppers.”

During the holiday season, Borderfree data showed that Canadian shoppers spent on average 34 percent more daily than they did during a typical shopping day during the rest of the year, with a fivefold increase on Black Friday. Other peak shopping days included Cyber Monday and Boxing Day with women’s clothing, luxury goods and home goods selling as the top categories.