Canada, the home of hockey, maple syrup, and moose, right? Well, yes, but that’s not all. Businesses shouldn’t dismiss it so easily for its stereotypical offerings, and instead dig a little deeper into the Canada ecommerce market.
Pattern has been a marketplace seller in Canada for over five years now. It is often the first market that astute US-based brands look to after they’ve established themselves domestically. But what is it that makes selling online in Canada a great opportunity for brands? Well to start, Canada ecommerce has the following:
While there is certainly a great opportunity for growth in crossing that border north of us, as with any international expansion, there are regulations that must be met and duties and taxes that must be paid. As an expert Canadian Amazon seller, we provide our analysis here of why we recommend brands expand to Canada and how we help brands get there.
The ecommerce site competitive landscape in Canada is somewhat similar to the USA currently: Amazon CA is largely dominant over all other major players, but Walmart Canada comes in as the second largest. Other familiar faces make up the top 10 ecommerce sites in Canada, including eBay, Newegg, Best Buy, and Home Depot.
Amazon Canada is the #1 ecommerce marketplace in the country, generating nearly $7.5 billion USD in net sales in 2020. Of those billions of dollars in sales, the top categories for Amazon Canada shoppers are:
Deciding which products to list in Amazon Canada and which to promote is more complex than just using the same strategy you utilise in the US. Pattern’s marketplace experts help brands determine things like which products can be sold, non-tariff barriers like product labelling and regulatory compliance, and expected taxes and tariffs of this new market.
Pattern recently helped a vitamin and supplements partner get the data they needed for a successful, compliant launch on Amazon CA, resulting in 55% brand growth year over year. And that’s not the only brand we’ve helped launch.
Fulfilment in Canada is best managed using FBA, similar to the US market. Pattern’s brand partners send their product directly to our Toronto warehouse where we prep them for shipment into FBA, and send them off on their behalf. For products not eligible for FBA, we set those products up in our warehouse and ship them directly to customers, handling fulfilment and logistics across borders.
Walmart Canada is the second largest Canadian ecommerce marketplace, and serves as an excellent expansion opportunity for brands looking to sell there. In 2020 Walmart Canada brought in $3.1 billion USD in ecommerce revenue. Additionally, the company is investing $110m in store renovations to enhance the omnichannel experience, expanding their product assortment, and piloting 10 hybrid locations with fulfilment space within stores.
For brands with products compliant with Canadian labelling and other regulations, products are shipped directly to the customer from a warehouse. While the best customer experience is created by having products in-country before shipping them to the customer, Walmart is running a programme called Ship With Walmart.
Similar to Amazon’s NARF program, sellers based in the US can make their products available on Walmart Canada and ship them cross-border. However, buyers and sellers should be aware that many products will have additional tariffs and taxes on top of what the customer purchases, and shipping will be 2-8 days.
Many of Pattern’s brands find great success as they expand to Canada, with most brands seeing revenue around 2-5% of their US Amazon revenue. Success in the Canadian ecommerce market, however, is directly correlated to how aggressive of a strategy the brand pursues with advertising, catalogue breadth, and maintaining their supply chain. Some of the brands taking Canada the most seriously are seeing revenue north of 10% of what they are making on Amazon in the US., not bad numbers to see.
Ready to benefit from the Canada ecommerce market or explore other new international opportunities? Get in touch with Pattern’s marketplace experts and learn the global potential of your brand.
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If you’re in the global ecommerce space, you are most likely aware of Amazon, and probably selling your products on the marketplace. With over $470 billion in sales in 2021 alone, Amazon stands as the third largest company in the world based on revenue. The ecommerce giant is a household name in the U.S. and working hard to grow its market share across five continents worldwide.
Having your products available on Amazon and being competitive there, though, are definitely two different things. If you want to really succeed on Amazon, you’ll need specialized insight into how Amazon works and how to make it work for you. So, for many brands, it’s a great idea to work with an Amazon Search Engine Optimization (SEO) agency.
At Pattern, Amazon SEO optimization service is one of our key competencies. We understand that technology, data-driven insights and expertise are the most important tools brands can leverage to win top listing spots on digital marketplaces. With expert teams and years of experience, we help brands conquer the Profitability Death Spiral as they compete with other products and sellers online. We offer Amazon SEO agency services as a core solution to brands that need more resources to get ahead.
An Amazon SEO agency serves brands by improving their products’ rank and listing performance on Amazon. They make strategic decisions about ad spending and placement that lead to higher traffic, conversions, and revenue for ecommerce brands.
A great Amazon SEO Agency partner will:
Unfortunately, many Amazon SEO agencies profit in unfair ways from your brands’ perceived success based on the ROAS numbers they provide. This is done through including branded search terms in ROAS reports, which naturally skew listing performance.
Let’s say, for instance, your brand is called “Annie’s” and you sell lollipops. Your brand has a very high likelihood of winning the top listing spots on Amazon for lollipop search terms that are paired with “Annie’s,” your brand name. So, SEO agencies will spend your ad money on those terms and report a very high ROAS.
To avoid scenarios like these, it’s best to look for an agency that either calculates their profits on metrics other than your ROAS scores or weighs branded search terms differently in the performance metrics reports. Regardless of your Amazon SEO agency’s cost structure, you should align onbranded search terms before committing to a scope of work.
A great indicator of a high-quality Amazon SEO agency is the level of insight they can provide into your competitors’ listing positioning and how it compares to yours. Data fanaticism is so important at Pattern that we’ve developed proprietary technology to display this exact information with precise detail for every brand we work with. In fact, you can find our free version here to see how you compare to some of your top competitors based on ASIN.
It’s certainly possible to improve your Amazon search performance with blind spending strategies. But a truly great solution will help you to know where your dollars are at their most powerful and competitive.
Amazon’s A10 algorithm prioritizes customer satisfaction—it wants to show consumers the best products that align with their search intent to improve conversions and sales. So, the best way to gain momentum on Amazon is to work on incremental wins.
Improving your performance on more obscure search terms that align with your customers’ search intent is a great way to increase ROAS for the long term. A10 will reward your success with better rankings on higher-volume search terms and the virtuous cycle can help you conquer your most-coveted listing spots. And the best part? This process of gaining momentum, if done right, will naturally decrease your ad spend over time as Amazon recognizes your value and works with you to keep your products at the top of consumers’ search results.
As an Amazon SEO specialist, Pattern knows how to help your brand win better success for long-term profitability on Amazon. With our data-driven tools and brilliant teams of ecommerce experts, we help brands with listing management, content optimization, Amazon ad strategies, and more.
Contact us to learn more about our SEO optimization services.