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"Canadian consumers spent more than $3-billion on Internet shopping last year," is the lead for an article in today's G&M entitled On-line spending soars 25% in '03. Still, the downer follow up is: "Even so, 'total electronic commerce spending represents only a fraction of the $688-billion in total personal expenditure in Canada last year,' the federal agency [StatsCan] said."
So what, that's half a percent of the consumer (personal expenditure) market. Nobody in their right mind expects e-commerce to overtake what it's taken a century to build up nor for that matter to be more than a portion of total consumer spending. It's patently ridiculous.
But, focus on the facts:
1. 4.9-million households (40% of all) shopped online last year. Of that 65% (3.2-million) households purchased something.
2. 21.1-million orders online last year -- over the 16.6-million the year before.
3. 5 out of 6 households that purchased online PAID online as well (allegedly a barrier).
Yes, it's small. But, there are people in the water and the conditions for joining (broadband penetration, more sophisticated offers and value, security enhancements, company) are much better. Zero to $3-billion in under a decade. And only getting faster.
Posted by Grayson at September 24, 2004 08:15 AM