• Forecast to be at least 10% of the Canadian retail market by 2020 according to eMarketer. Canada is a sizeable country with a population of more than 36 million, 22.5 million of whom are already digital shoppers. It is a country with a receptive consumer base currently enjoying economic stability and disposable income - Canada’s financial system has repeatedly been ranked as the world’s most stable by the World Economic Forum.
• The UK is Canada’s second biggest trading partner so there is already a trusted relationship between the two countries.

• As in the US, English is widely spoken in Canada so there is no language barrier for UK retailers to overcome.
• Digital buyer penetration among Canadians aged 18 to 34 is 92% so this is a market with huge growth potential as it matures.

• Millenials are key Canadian consumers - frugal, savvy shoppers and not looking to be loyal to a particular brand. They are a key demographic to consider.
• Mobile is increasingly more popular - and Canadian shoppers use their devices more and more to make purchases.
• Personalisation is becoming key - customers expect customised offers and personalised interactions, whether in store or online.

• The sharing economy is a factor - Canadian consumers are waking up to the possibilities of getting products and services from each other, rather than justs being reliant on new purchases from big brands.
• Health and wellness is a huge consumer trend - combating stress, improving fitness and overall health are the dominant themes.

Returns have a key role to play in whether customers are content with the service that they get from businesses and retailers. Smoothly managed returns with a transparent customer service keep satisfaction levels high no matter how many are being processed. For any enterprise aiming to ship to North America, Canada’s parcel return rates represent key knowledge to have – so here is what that you need to know.

The rates of return tend to vary from industry to industry, as is the case in any location – some businesses see returns of around 22% while in sectors such as retail this can reach as high as 50%. However, research from the Canada Post has identified some common themes in the way that Canadian consumers feel about returns, which are useful for any business looking to export there.

• Shipping costs have an impact on whether consumers believe that returns should be free. 30% of online consumers are happy to pay for their returns if they didn’t have to pay too much for delivery in the first place.

• However, that’s not the case for poor quality or defective items. Between 96% and 99% of Canadian online shoppers believe that a return should be free if there has been a quality or performance issue.
• Currently only 22% of retailers accessing the Canadian e-commerce market offer free returns by mail. That’s in spite of the fact that return cost is critical to those who are shopping online in Canada. In fact, 84% identify the availability of free returns as an essential part of what they would describe as a perfect online shopping experience.

• Retailers that engage with the customer demand for cheaper returns are likely to do better. According to the research, 49% of customers are more likely to select a retailer that has factored in some sort of discounting to return rates than one that is transferring the entire cost of the return to the customer.

Returns management will be an important part of the process of establishing and maintaining a loyal customer base in Canada. Ideally, work with a logistics provider that will enable you to:

• Create a bespoke returns policy for your customers
• Ensure that returns are an effortless and seamless experience
• Manage returns easily and efficiently within your own business

• Gain some insight into how returns are affecting your business in terms of forecasting and management
• Offer a choice of low cost returns, as well as a premium returns service
• Enable you to establish a reliable cross-border returns service that makes customers feel they can trust your brand