Jesse Kline: Out-of-business Canadian retailers only have themselves to blame

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Amazon makes billions because it is easy to use and others should copy its free shipping model and other conveniences

Even before the pandemic, Canadians were turning to online shopping in increasing numbers. Between 2016 and 2019, the proportion of online sales rose from 2.4 to four per cent, according to Statistics Canada.

I don’t even mind having to place a minimum order. In May, we ran out of our favourite cleaning spray and couldn’t find it at the grocery store. So I bought 11 bottles of it from a large hardware store that had a $50 minimum order. I’ve purchased $50 worth of baby supplies to get my hands on an $11 soother, and spent more money on socks than I ever thought possible.

Our family experienced a similar situation when we went into lockdown and wanted to purchase art supplies for the kids. The prices at a large arts and crafts store were almost universally better than Amazon, until we factored in the cost of shipping, which increases as the value of the order goes up. So Amazon got our business.

 

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Can’t deny that most Canadian retailers have failed to create an effective online experience, but pointing out Amazon’s unprecedented success and market dominance without recognizing the tax loopholes they’ve exploited seems unfair. The playing field is terribly uneven.

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