Windsor businesses embrace e-commerce
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Windsor-area businesses have grasped the lifeline presented by e-commerce in numbers unmatched in Canada during the COVID pandemic.
The San Francisco-based e-commerce/technology firm Square reports 81 per cent of the business it serves locally were selling their products and services online at the end of August. That’s 18 per cent higher than the Ontario average and 23 per cent above the national mark.
“E-commerce was a huge part of us surviving,” said ShopEco owner Debra Purdy.
“I’m not sure we would’ve made it through without that.”
Purdy said ShopEco had a website when the first lockdown occurred in March 2020, but there were no online transactions. She used the first two weeks of the initial lockdown to develop an e-commerce strategy that included online purchases, curbside pick-up and deliveries.
Purdy maintains a Tecumseh storefront, but never re-opened her Walkerville location to in-person shopping after the first lockdown.
“E-commerce has gone from zero to 15 to 20 per cent of our business,” Purdy said.
“E-commerce isn’t an option for business anymore, it’s an expectation. There’s a limited population in Windsor, you have to reach out.”
Square economist Felipe Chacon said Windsor is “an outlier” in its rapid adoption of e-commerce.
He said 51 per cent of local businesses offered online sales options in March 2020 and it has remained around the 80 per cent mark for the past five months.
By comparison, Norfolk County is the next highest adopter at 68 per cent followed by Ottawa (66), Hamilton (64), Kitchener-Waterloo 63 and Toronto (60).
The figures for the survey of 30 Canadian communities were compiled from Square’s client base.
“Everywhere saw an increase with the pandemic, but Windsor has been bigger and it’s kept going,” Chacon said.
“I think the reason why is partly due to its isolated geography and being a border community.
“That has forced businesses to reach out to find new markets to survive.”
He added e-commerce has been more strongly adopted in mid-sized and rural communities than big cities in North America.
“The density of urban environments creates enough foot traffic for many businesses,” Chacon said. “Suburban and rural business have to make their presence known.”
Windsor-Essex Regional Chamber of Commerce CEO Rakesh Naidu feels border communities’ designation as foreign trade zones also helps.
“Local businesses are able to ship up to $830 US in merchandise to American clients without duty,” Naidu said. “Combined with the exchange rate on the U.S. dollar, that really works in our favour.”
Purdy is still laying the groundwork to begin shipping to the U.S., but she has seen her client base expand to British Columbia and Quebec.
“We’re getting a lot of orders from Montreal now,” said Purdy, who credited a FedDev Ontario grant for female entrepreneurs for helping her develop her online presence.
“We’re also getting orders from smaller southern Ontario cities and towns.”
Naidu said he’s “pleasantly surprised and encouraged” by the high rate of adoption of e-commerce by area businesses.
He said there’s been a doubling of the number of businesses with an online sales presence.
“COVID has made it imperative to have an online presence and that applies to all sectors of the economy,” Naidu said. “The last two years we’ve seen about 10 years worth of digital transformation take place.”
Naidu credits the buffet of programs, services and funding that’s been made available through Ontario’s Digital Main Street, FedDev Ontario, WEtech Alliance, the chamber, local tourist board and other organizations for the aggressive adoption rate.
“The biggest obstacles for many business to their digital transformation is a lack of tech savvy and having the resources,” Naidu said.
“These programs were very helpful, as were the students with tech knowledge helping business set up their online presence.”
Purdy said the trend to more online commerce is only going to gather momentum going forward.
Even products like cars and homes are now being routinely sold online without consumers ever seeing the products first hand.
“There’s no going back,” Purdy said.
“People like the deliveries. They like ordering and just picking it up curbside.
“People expect options and they want flexibility.”
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