Delivering the Online World - Vol.3 | Canada Post

From trading posts to the global stage

Strategic appealFive ways to attract more customers

Post office innovationDrive-thru Parcel Centre(with a fitting room!)

DELIVERINGthe Online World

Fall 2015

Sean McCormickCEO of Manitobah Mukluks,

2015 Canada Post E-commerce Innovation Award winner

Manitobah Mukluks

What it takes to make it happen.canadapost.ca/WhatItTakesSign up today for FREE.

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Your business is becoming the success you hoped for. And now Canada Post Solutions for Small BusinessTM can help you take it further, by setting you up to bring your business online and provide your customers with the best experience possible. Our e-com-merce partners will help you design, build and

host your e-store, with a built-in Canada Post suite

of shipping tools. You’ll be creating a positive online shopping experience with all the shipping, pricing, tracking and returns information your customers want. And you’ll be paving the way for that next purchase.

Canada Post Solutions for Small BusinessTM is a trademark of Canada Post Corporation.

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5 Letter from the CEOCanada Post is excited and proud to celebrate and support Canadian retail success stories.

7 Industry insightsFrom pop-up shops to online marketplaces, insights that can help you maximize your e-commerce enterprise.

10 Spotlight: Big Red Beard CombsBy focusing on quality, design and new markets, the duo behind Canada’s coolest start-up plans to outlast the hipster beard trend.

12 Cover story: Manitobah MukluksIt’s Canada’s fastest-growing footwear company, and a rising global star. How Manitobah Mukluks went from selling in trading posts to the international stage, while keeping its commitment to social issues front and centre.

16 Competing with giantsHow small retailers are competing against retail giants – and winning market share. Five strategies to help you succeed.

26 Q & AForrester Research principal analyst Sucharita Mulpuru-Kodali talks online retail in Canada.

Fall 2015

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Canada Post and you

20 Our new drive-thru parcel centre

22 The value of parcel data

24 Paderno: Beating expectations

25 Creating an effective delivery promise

DELIVERING the Online World

Cover story

Manitobah MukluksGlobal success story and winner of the Community Impact Award at this year’s Canada Post E-commerce Innovation Awards

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18 Canada Post E-commerce Innovation AwardsRetailers shine at the fourth annual event recognizing excellence in e-commerce.

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Delivering the Online World 5Fall 2015

In our inaugural year, we had the privilege to give awards to Canadian e-commerce vanguards such as Well.ca and Rent frock Repeat. We recognized Mountain Equipment Co-op for its inspiring vision of how the digital channel could engage customers and tell stories. We welcomed to the stage Russ Montague, the dynamic young CEO of pop culture T-shirt start-up, ShirtPunch, who compared his win to getting an Oscar. Montague later used his prize to launch a new venture, Nerd Block, which won its own award this year.

Since year one, we have celebrated retailers of all kinds and sizes, from Best Buy Canada and Hudson’s Bay to Yummi Candles and Manitobah Mukluks, which won the first Community Impact Award at this year’s event and is featured on this issue’s cover (see page 12). You can find the complete list of this year’s winners on page 19.

The retail stories that have made the Awards so special are now inspiring the vision of this magazine, which is to celebrate, support and grow your successes.

We are excited to recognize your innovations, and look forward to sharing our own, such as our first reimagined retail outlet, which we launched last month in Richmond Hill, Ontario (see page 20). It includes a drive-thru parcel pickup and a fitting room, along with self-serve shipping stations and other convenient features to make online shopping easier. We’re also hosting a pop-up shop within this space. We are proud to have Rent frock Repeat help us launch this new initiative.

Together, we are turning that e-commerce momentum into something more: a movement. We look forward to this exciting future, and to celebrating it throughout these pages.

Deepak ChopraPresident and CEOCanada Post

In 2012, e-commerce in Canada was just starting to gain momentum. To underscore its growing importance, we wanted to host an event that would allow us to recognize and inspire innovation in the industry. So we launched the Canada Post E-commerce Innovation Awards – an event that was special from the start.

LETTER FROM THE CEO

PRESIDENT AND CEO CANADA POSTDeepak Chopra

VICE PRESIDENT MARKETING AND

COMMERCIAL PRODUCTSBill Gunton

GENERAL MANAGER ENTERPRISE MARKETING

Jennifer Campbell

DIRECTOR COMMERCIAL MARKETING

Christine Gillingham

EDITORIAL DIRECTORCynthia Reynolds

MANAGER GRAPHIC DESIGN

Céline Morisset

ART DIRECTION AND DESIGNKim Mallette

CONTRIBUTING WRITERSJasmine Miller

Nancy Carr

PROOFREADINGChristopher Mallory

PHOTOGRAPHERJohn Woods,

The Canadian Press

VOLUME 2 | FALL 2015

DELIVERINGthe Online World

ON THE COVERSean McCormick,

Founder and CEO of Manitobah Mukluks

Delivering the Online World is published by Canada Post.

Canada Post 400 Hunt Club RoadOttawa ON K1V 1C1 PM42983513

Contents copyright 2015 by Canada Post May not be reprinted without permission

Delivering the online worldTM

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To get a better price on items

60%

agree

Top reasons Canadians shop online

The availability of free returns

57% agree ✓

The availability of known payment services such as PayPal, Visa Checkout

54% agree ✓The ability to take advantage of loyalty program benefits or points

47% agree ✓

25% neutral 12% disagree

60%

agree

Factors affecting where online shoppers shop


Does online security matter?I am concerned about sharing my credit card information

With the rise of omni-channel, customers have more choices in how they connect to retailers than ever before. But what motivates their choices? In today’s fast-changing retail environment, every piece of information can help you optimize your offering.

For the convenience/not having to go to the store


I enjoy shopping online!

58%

agree

57%

agree30% neutral 10% disagree

39%

agree

To purchase items that are not otherwise available

ONLINE WORLD BY THE N U M B E R S

INDUSTRY INSIGHTS

Source: Building eShopper Loyalty, CPC 15-213, August 2015

Popping up local

Computer

69% Tablet

11%Smartphone

5%

While e-commerce helps shoppers access global markets, more retailers are realizing that Canadians still crave face-to-face community-based interaction. Letting customers experience your brand and products in a local, physical setting can earn loyalty. That’s precisely the drive behind pop-up shops.

Though pop-up shops are increasing in popularity, it can be hard for a start-up or unknown brand to secure space. In this case, community organizations that invest in the local pop-up shop industry to either encourage entrepreneurship or keep shopping districts vibrant can be valuable partners.

Toronto-based Vacantful, for example, matches landlords of vacant retail properties with small businesses interested in short-term leases. It also helps with promotion and ensures retailers get the most out of their investment.

“Consider the money you’re putting into a pop-up shop as part

of your advertising budget so that your brand can be seen locally and get known in your city,” says Vacantful owner Ghazaleh Etezal, explaining that a pop-up shop isn’t about immediate sales. “You might not earn your rent back from your sales, but you’re investing in visibility in a retail space that you wouldn’t otherwise have.”

If you’re thinking of a pop-up shop for your business, remember you’re not just selling widgets, you’re selling your brand:

• Pay attention to how you present your space and your products so that you make a lasting impression.

• Consider offering experiences such as demonstrations, tastings or workshops.

• Use your digital channels and direct mail to drive traffic to your pop-up.

Canada Post knows the power of pop-ups – that’s why we launched one at our new retail store in Richmond Hill, Ont. See page 20.

How you can build community-based relationships with your customers

While it’s true that smartphones make up just a small portion of e-commerce transactions, keep in mind: Mobile is the fastest- growing channel, and it’s key toyour Google search rankings.Responsive design is a must.

Devices frequently used for online purchases

Source: Building eShopper Loyalty, CPC 15-213, August 2015

The Everyday collective pop-up featured over a dozen vendors this past spring and summer in Toronto.

canadapost.ca8

INDUSTRY INSIGHTS


INDUSTRY INSIGHTS

For retailers that must continually search out new ways to compete, joining an online marketplace is an increasingly popular strategy.

Choices include big names such as eBay, Amazon, Shop.ca and Best Buy Canada, which recently launched its Canadian marketplace.

There are also niche marketplaces that cater to specific segments, including Etsy and Newegg, which focus on handmade goods and tech products, respectively.

There is no shortage of choice. But here’s the real question: should you join their ranks?

For any retailer, the main draw of an online marketplace is its capacity to reach more customers than you can on your own, so you can sell more products and boost your bottom line. Amazon, for instance, welcomes 85 million unique viewers… every month.

Another advantage is that retailers looking to expand beyond our borders can more easily tap international markets. Tmall Global, for instance, owned by Chinese e-commerce behemoth Alibaba, offers one of the biggest business- to-consumer retail platforms in China, and entry into that nation’s booming e-commerce market.

So if more customers and bigger markets count among the upside, is there a downside? That depends.

An online marketplace requires you to operate inside its already

defined brand experience. That means following its rules. You’ll need to relinquish some autonomy over your own branding as well as the online experience that conveys it. So consider how important these

factors are to your customers.Bottom line: if you’re ready to

take the marketplace plunge, choose a platform that matches your brand, and puts your products in front of the best prospects.

Is an online marketplace for you?

More customers vs. brand autonomy

Carpe diem!Seasonal events are big online business. Last holiday period, Cyber Week parcel volumes jumped 59% compared to the week before. This August, Back-to-School annual volumes saw strong double-digit growth. The takeaway? Don’t be shy when it comes to creating your online seasonal events calendar. Offer your best promotions when customers are primed to shop.

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They weren’t actively searching for the next big thing to turn into a thriving online business. Instead, couple Rick Heatley and Keri Brunskill got into the comb making business organically.

Heatley, a high-end furniture maker, was building a kitchen for his mother in the summer of 2013. On a whim, he decided to start growing a beard and not shave it off until the kitchen was finished.

“My mom kept making changes and things took longer than originally thought. So I ended up with this big beard,” says Heatley, who’s also known as Big Red, because of his bushy, ginger facial

hair. “I was never really intending to keep the beard. It just kind of grew on me.” (Pun intended.)

Because he had the right tools on site at his home workshop, Heatley started to make, test and remake different styles of wooden beard combs to tame his tangles. Slowly, he and Brunskill, who live 20 km northwest of Victoria, realized they might have a new business on hand. They showed their products to local barbershops and sought their feedback. The hair care professionals were so impressed that they snapped up the combs on the spot.

Little did the duo know the beard grooming market was about to

explode as young hipster men everywhere decided to turn full-on facial hair into a global fashion statement.

Going for qualityFast forward to 2015. Big Red Beard Combs now sells combs, beard balms and oils online, employs nine people and has seen sales double in the past year. It ships about 1,000 combs per month to customers around the world, with the U.S., Sweden and France among its most profitable markets.

Brunskill, head of web design and marketing, attributes the company’s success to the high quality of their

Taming

of the

beardsHow B.C.-based Big Red Beard Combs plans to rule the global beard-grooming market

By Nancy Carr | Photography Chad Hipolito, The Canadian Press

Keri Brunskill and Rick Heatley, founders of Big Red Beard Combs


SP TLIGHT

small combs. They are typically made of walnut, cherry, makore and teak, and are unusually strong for their size. Big Red combs are laminated to give them extra strength, which is a niche the company has created and takes great pride in. The combs come in a dozen styles, including ones that are artfully engraved, double-sided and foldable.

Start-up challengesTurning their idea into a business wasn’t easy. For instance, before launching the company, the pair didn’t have much experience with social media, which they consider an integral part of growing their business.

“We had to learn how each different social media platform works,” says Heatley. “How people interact on Twitter is very different from how people interact on Instagram or Facebook. It was a challenge to figure that out.”

Other hurdles included getting approved to accept credit card payments, creating a responsive website for computer, tablet or smartphone (50 per cent of their customers access the company via

mobile), and finding the most cost-effective shipping strategies.

“The shipping method was something we had to learn a lot about,” Heatley says. “We did some research into the cost for shipping certain sizes and weights of packages, so when we were designing the products we kept that in mind.”

Also, in order to enable anyone on staff to easily drop off shipments at the post office at the end of the day, the company opted to use Canada Post’s Electronic Shipping Tools to print labels in its office.

What’s next?Now, their biggest challenge is competition. As the popularity of beards increases, so is the number of retailers catering to them. Just a few years ago a Google search for “beard combs” turned up zero hits; the same search today gets more than 700,000. But the pair is also keenly aware that they must position themselves for success after the hipsters move on to a new facial trend.

“There’s a massive oversaturation of product. The hipster component of the beard revival will die off and a lot of those companies will move on

to something else,” Heatley says. “But there will be a core set of companies that will continue to cater to the bearded lifestyle, and we’ll be one of them.”

According to Heatley, the couple is also looking to increase sales in the Middle East, where beards are part of the culture for men of all ages, not just a passing fad. “That’s a whole other market there.”

But for now, Big Red Beard Combs is riding high on its popularity among all buyers: hipsters, bikers, lumberjacks, regular Joes and the women who offer combs to these hirsute guys.

“Men who have beards are fiercely proud of their beards,” says Brunskill. “And they all want to take care of them.” DTOW

Delivering the Online World profiles Canadian retailers who are using e-commerce to expand their business. Know a retailer whose story you think should be told? Email us at [email protected]

“We did some research into the cost for shipping certain sizes and weights of packages, so when we were designing the products we kept that in mind.”

1. Founder Rick Heatley 2. The bestselling Stash Kit 3. Brunskill’s original art appears on selected combs1

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3

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When asked what prepared him to become the CEO of a thriving global company, Sean McCormick laughs. Growing up, he wasn’t connected to the world of business and, for him, the idea that one day he could run his own wasn’t even a possibility. But there was one thing: “I wore mukluks all my life.”

Great choice. McCormick, who is Metis, is the founder of Winnipeg- based Manitobah Mukluks. It is the world’s leading retailer of mukluks

and moccasins, and with a five-year revenue growth of 335 per cent between 2009 and 2014, this Profit 500 company is the fastest-growing footwear company in Canada. Its Aboriginal styles are available across multiple channels, are sold in almost 50 countries, and can be found in stores ranging from rural trading posts to big-city retailers like Holt Renfrew and Nordstrom.

What’s behind the success? McCormick points to two factors:

the company’s strong commitment to social issues, which resonates deeply with customers, along with the high quality of its footwear based on a 10,000-year-old design. “Once customers wear our product they realize it’s the best boot they’ve ever worn.”

Building successIn his early twenties, McCormick launched an enterprise that could have existed 200 years ago. He was

Success How E-commerce Innovation Award winner Manitobah Mukluks became the fastest-growing footwear company in Canada

By Cynthia Reynolds | Photography John Woods, The Canadian Press


trading leather to First Nations women in exchange for their finished mukluks and moccasins. But he wanted to take it further. So, in 1997, he established a small company that manufactured the footwear, which he sold mostly in the souvenir market and throughout trading posts across Manitoba.

While consumer demand for mukluks steadily rose over the years, it skyrocketed in 2006 when celebrities like Kate Moss and Jessica Biel were spotted wearing them. As the brand began to expand, so did McCormick’s vision.

But the business model itself posed a growth challenge. It’s a labour-intensive enterprise; you can’t just press a button and punch out

more product. It’s also cash-intensive. Inventory builds over eight months, but typically, customers buy winter apparel only from September to January.

To grow, his company would need financing.

Capital injectionIn 2009, Manitobah teamed up with the CAPE Fund, an investment fund launched by former Prime Minister Paul Martin to support Aboriginal- owned businesses both financially and socially. “It’s one of the best things I’ve done,” says McCormick. “It couldn’t be a better a fit.”

The cash injection allowed the company to make the investments it needed to move from a small to a

by heartStaff members in Winnipeg take a moment with CEO Sean McCormick to celebrate their success (from left to right): Adam Johnston, Glen Stevenson, Kristine Genovea, Yvonne Spence, Sarah Brazauskas, Sandra Staples-Kutny, Jaideep Kaur, Jason McNish, Bhupinder Singh, Julie Deaffie, Sean McCormick, Robin Poitras, Nelson Leong, Mathew Desjarlais and Ricardo Casas.

“Our website has become our flagship store that communicates our story. Our ability to reach out to new consumers, understand the costs of doing so, and then being able to scale that, has been instrumental to our growth.”

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Customer service representatives Elisa Anderson (left) and Amanda Corrigan use information from the website to support shoppers.

medium-sized business. For instance, it enabled

Manitobah to better target the big-city market by transforming the mukluk into a boot that could withstand not only the wilderness, but also the urban jungle.

It teamed up with Vibram, a leading manufacturer of outsoles, to create an outsole that could survive pavement, while maintaining the unique qualities of a mukluk. “We wanted an invisible outsole so as not to take away from the aesthetic of the mukluk – or what makes a mukluk a mukluk – it had to be super light, so you can still feel the ground.”

The company also invested more heavily in e-commerce, which is today its fastest-growing channel.

“Our website has become our flagship store that communicates our story for us,” says Tara Barnes, Director of Brand Development and Public Relations. “Our ability to reach out to new consumers, understand the costs of doing so, and then being able to scale that, has been instrumental to our growth.”

So has increasing its marketing spending. Its ability to directly measure results through its Shopify platform and Google Analytics enables the company to focus its initiatives on areas that yield the greatest ROI – and confidently make the marketing investments, says Barnes, that it otherwise may not have made.

Going globalThe investment capital also helped the company expand beyond Canada’s borders.

“One of my constant frustrations,” McCormick says, “was developing a new product, and then six months later seeing it knocked off by some bigger company that made it overseas for half the price. If our community is going to change its future, we need to be participating in the global economy.”

His team opened a factory in Vietnam, where it had to start from scratch because, as McCormick recalls, no one there knew how to make a mukluk. In building its

overseas operation, the company applied the same ethos that guided it in Canada. For instance, it pays a living wage, provides a healthy lunch to the factory workers, and McCormick visits the factory through-out the year.

“You hear about sweatshops and bad working conditions. But it doesn’t have to be that way, you just have to be willing to put some money and effort behind it,” says McCormick. “Everyone deserves to be treated with respect.”

Making a differenceAt the 2015 Canada Post E-commerce Innovation Awards™, Brand Ambassador Waneek Horn-Miller accepted the Community Impact Award, presented to Manitobah Mukluks for its c ommit-ment to social issues, including its multiple initiatives to improve the lives of Canada’s Aboriginal people.

“We all believe in the mission of this company. Everything we do in the business helps us make a community impact,” Horn-Miller

Canada Post E-commerce Innovation Awards is a trademark of Canada Post Corporation.


Manitobah Mukluks increased its customer base by outfitting its mukluks with a sole that could withstand the urban environment, while maintaining the boots’ traditional aesthetics.

In October, Manitobah Mukluks launched a Storyboot School for the first time in Toronto. At the Bata Shoe Museum, artisan Rosary Spence (above right) taught a group of young Aboriginal women how to handcraft mukluks by cutting, sewing and beading traditional materials. “These women want to learn,” says Spence. “But it’s also about getting together and talking and sharing with each other.” Spence is also part of the Storyboot Project, which allows artisans to sell their own handcrafted designs on the Manitobah website.

Teaching the art of mukluk-making

explains. “The more mukluks we sell the more we can give back and make a difference.”

As a result of its business success, the company has been able to expand its capacity-building i nitiatives, including the Storyboot School where artisans teach young Aboriginals how to craft mukluks; the Storyboot Project, which allows artisans to sell their handmade mukluks on the company’s website; and its bursary program, which provides scholarships to Aboriginal youth in Winnipeg to attend college and university.

This social conscience is also intentionally embedded into Manitobah’s business practices. For instance, it maintains 25 per cent of its manufacturing in Winnipeg, and ensures that Aboriginals comprise at least 35 per cent of its workforce. As is the case in Vietnam, it pays 25 per cent above the minimum wage to the workers – mostly women – who sew its footwear.

But one of the biggest ways Manitobah Mukluks gives back is by continuing to drive for global success.

“One of the things that holds our communities back is that we just don’t know what’s possible. Never mind achieving it, we don’t even know it exists,” McCormick reflects. “So among all the things we do, maybe just the pride and the example of what’s possible is the most impactful.” DTOW

Canada Post proudly supports Manitobah Mukluks’ growing e-commerce channel. To learn more about our shipping solutions, visit canadapost.ca/shipping.

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Competing with

GIANTSHow small businesses are making it in today’s retail landscape By Jasmine Miller


1. Charge more Discerning customers will pay more for a first-rate product. The key is quality. That can mean superior ingredients, materials and durability. It can also mean fair trading practices with suppliers and creators, as well as ecologically sound manufacturing choices. If your business invests this way, make it a priority to tell your customers.

Montréal-based streetwear label Raised by Wolves calls it “buying into a system of values” and weaves this idea throughout its business. It keeps production in North America, produces limited numbers of each item and ensures a safe working environment for suppliers. It doesn’t compete on price – its currency resides in how it defines value.

2. CollaborateBig retailers can afford to cast their marketing nets wide with campaigns that target as many people as possible. Smaller businesses need to focus on their best prospects. Collaboration with like-minded partners – including other retailers, bloggers and social media influencers – lets you share audiences and extend your reach into a new pool of potential customers. For the strategy to work, choose collabora-tors carefully, making sure both audiences overlap.

Montréal eyewear retailer BonLook understood this perfectly when it commissioned the founders

of the popular blog A Beautiful Mess to design a signature line of glasses. Followers of the blog are discriminating consumers of unique fashion and decor; their priorities are character and individuality – the same attributes that describe BonLook’s customers. These businesses were able to get exposed to each other’s shoppers, and expand their customer base.

3. Go slowThe slow movement has gone beyond food and taken hold in fashion, travel, even design. A growing band of devotees is willing to wait for what they want; for them, authenticity is more important than speed. The secret to capturing this segment? Meaningful customiza-tion and products that tap into their desire for handcrafted offerings.

Canada Post E-commerce Innovation Awards™ winner Poppy Barley (see page 18) lives in the crowded retail footwear space, but the company’s niche is made- to-measure. Customers of the Edmonton-based retailer order shoes and boots made for them alone. That takes time – six to eight weeks, in fact. But that’s not a problem for its growing customer base, which embraces the adage that good things come to those who wait.

4. Transcend the saleShopping habits often reflect not just customers’ need for particular

products, but also their commitment to a certain lifestyle. They buy books and are concerned about childhood literacy; they choose organic produce and want to support local farmers. Support your customers’ lifestyle, and you can earn their loyalty.

For instance, though the mainstay of Fresh City Farms’ business in Toronto is food delivery, the retailer also offers cooking workshops, farm tours and screenings of movies about food issues. A transaction with the retailer is one-stop shop-ping for those who care about food, its source and the issues that affect it.

5. Own your nicheNo matter what your category, you can become a destination shop by offering hard-to-find, rare or overseas imports. The key is to source items that mass merchants don’t carry. For instance, Canadian shoppers can find bathing suits at many stores, but Hamilton-based Kayokoko Swimwear has the largest inventory of swimwear in the country, including hard-to-get items from global designers. It’s one of the reasons this small retailer won Best Online Shopping Experience at the 2015 Canada Post E-commerce Innovation Awards. DTOW

How do you compete with giants? Share your strategy – email us at dtowmagazine@

canadapost.ca

Retail giants seem to have it all. They’re able to leverage their economies of scale to offer rock bottom prices, provide next- or even same-day delivery, and build marketing budgets that rival the GDP of small countries. Yet, that doesn’t mean small-size retailers can’t win impressive market share. How? Here are five savvy strategies.

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2015 CANADA POST E-COMMERCE INNOVATION AWARDS

And the winner is…Celebrating the achievements of Canadian online retailers at this year’s Awards

On September 28 in downtown Toronto, leading and emerging retailers from across the country gathered at the fourth Canada Post E-commerce Innovation Awards. The room was filled to capacity, as the finalists were joined by industry experts, investors and thought leaders.

The stakes of the evening were high, with a share of $1 million worth of shipping and marketing prizes on the line.

Hosting the event was popular broadcaster James Duthie. He was accompanied by TSN colleague Kate Beirness, who interviewed finalists and winners throughout the night, making sure the retailers were the true stars of the night.

The evening’s winners were chosen by an independent panel of judges drawn from a variety of top organizations including Google Canada, Forrester Research, the Retail Council of Canada, Dx3 Canada and eComMTL.

From household names to rising retail stars, the winners represented an array of Canadian retail talent.

Best Buy Canada, for instance, was recognized for its “total retail” program, while the audience also got a glimpse of Canada’s newest tech wunderkind, Thalmic Labs. The Kitchener-based company won Most Exciting Start-Up for its Myo armband that allows users to

wirelessly control technology through arm gestures.

A new category debuted at the event: the Community Impact Award. Duthie gave a special shout-out to all the finalists, but it was Manitobah Mukluks that took the top honour for its

multiple initiatives to improve the lives of Aboriginal youth (see our feature story page 12).

Another first at this year’s event – an award was given to a company that is not a retailer. Deepak Chopra, President and CEO of Canada Post, presented this year’s

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WINNERS

Best Omni-Channel Retailer, Large

Best Omni-Channel Retailer, Small

Best Online Shopping Experience, Large:

Best Online Shopping Experience, Small

Most Exciting Start-up

Best Customer Engagement

Consumer Champion Award

Community Impact Award

Canada Post E-commerce Innovator’s Award


2015 CANADA POST E-COMMERCE INNOVATION AWARDS

1. Left to right: Jaime Lepine (head of e-commerce), Josh Fine (Vice President Brand and Distribution), Aron Slipacoff (Vice President Communications) and Waneek Horn-Miller (Brand Ambassador) at Manitobah Mukluks, Jacques Côté (Group President Physical Delivery Network, Canada Post) and Marc Hyman (Managing Director, Crownhill Packaging)2. Thierry Hay-Sabourin, Vice President eCommerce, Best Buy Canada 3. Co-hosts Kate Beirness and James Duthie, with Canada Post President and CEO Deepak Chopra (middle)4. Scott Adel, Head of Omni-Channel, Frank & Oak 5. Kate Beirness and Sokratis Antonopoulos, Senior Director of eCommerce and Marketing, Yummi Candles 6. Deepak Chopra and Harley Finkelstein, Chief Platform Officer at Shopify 7. The judges are able to relax after debating this year’s finalists and winners 8. From left: David Smith (Delivery Agent, Canada Post), Sameera Banduk (Marketing Director, Thalmic Labs), John Ferguson (President and CEO at SCI Group), Tim Witt (Vice President of Sales, Ford of Canada).

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Canada Post E-commerce Innovator’s Award to Shopify for its easy-to-use platform and wide-ranging support of small business.

Stay tuned for details of next year’s Canada Post E-commerce Innovation Awards. The call for applications is coming soon. DTOW

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CANADA POST NEWS

Customer convenience soars in Canada Post’s new Drive-thru Parcel Centre, a pilot store in Richmond Hill, Ont. Its innovations include a drive-thru devoted to parcel pickup and a fitting room. Women’s fashion retailer Rent frock Repeat will also help us launch our new pop-up shop initiative over the holiday season. This living lab is built to test consumer preferences in postal retail.

Customers save time by staying in the car at the drive-thru parcel pickup.

Buy stamps, prepaid envelopes or gift cards at the 24/7 self-serve vending kiosk.

Larger postal and parcel boxes are accessible 24/7.

Redefining retail convenience

Fall 2015Delivering the Online World 21

CANADA POST NEWS

Bought an outfit online? Is it right for you? Try it on right away in the fitting room.

Send a parcel anywhere in Canada at the self-serve shipping station. It’s easy on the touch-screen.

Secure, 24/7 access to the self-serve features that make simple transactions easy anytime.

22 canadapost.ca

CANADA POST NEWS

Tweaking the recipe to enhance customer satisfactionPaderno takes exceptional pride in the quality and look that go into every product it sells. Its team takes the time and care required to ensure that every piece of cookware delivers outstanding cooking performance and durability.

Until recently, Paderno’s online store used a mix of carriers to provide shipping services to shoppers. When customers ordered merchandise, a carrier would be chosen on their behalf based on lowest cost of shipping. Factors such as delivery times, convenience and customer preferences were not key consider-ations. As a result, the delivery

experience could be different every time: parcels might be delivered to the local post office one time and the next time, left at a courier depot miles away.

Recognizing service consistency as a key component of delivering the

optimal online shopping experience, Paderno agreed to test customers’ experiences by giving a choice of three carriers upfront. One of them was Canada Post.

Serving up delivery choice yields interesting resultsThe Canada Post team worked with Paderno to find the best shipping solution to meet its customers’ needs. That solution was the Expedited Parcel™ service.

A six-week trial, which allowed customers to choose their carrier generated remarkable results and clearly identified shopper preferences. “Even though shipping costs were similar for all three carriers, 88 per cent of Paderno customers preferred Canada Post,” says Scott Chandler, Marketing Director at Paderno.

Chandler is convinced that consumers chose the Canada Post service because it’s a reliable, cost-effective and secure way to receive their purchases when and where it’s convenient for them.

They can also track their packages from start to finish and have the option of having their merchandise delivered to their home or to a nearby post office where they can sign for it and pick it up.

“At Paderno, giving our customers convenience and reliability is all part of offering a great experience from end to end. We know now that Canada Post is their preference. That’s why we’ll continue to ship through Canada Post.”

1. Source: Canada Post, Consumer Delivery Preferences, CPC 14-206, August 2014

Beating expectationsFor Paderno customers, Canada Post’s Expedited Parcel serves up convenience and reliability

88%of Paderno customers preferred Canada Post over two other carriers.

67%of frequent Canadian shoppers said they were more inclined to purchase high value items online when offered enhanced delivery options at checkout.1

To learn more about Canada Post’s shipping and delivery solutions, visit canadapost.ca/shipping.

Expedited Parcel is a trademark of Canada Post Corporation.


As the e-commerce industry evolves at a fast pace, it can be hard for retailers to keep up. From customer acquisition to logistics, deciding where and how to invest in your online retail channel is anything but easy.

To help retailers better under-stand the industry and how it’s changing, Canada Post is dedicated to sharing its valuable e-commerce parcel shipments data.

“We have an interesting lens on the market, and we complement that with research that allows us to deeply understand the trends, what’s happening in emerging industries, and how customer expectations are changing for online shopping and delivery,” says Danielle Doiron, Canada Post’s Director of Parcels Market Development. “This information helps us drive our own innovation, and feeds back into the e-commerce ecosystem to support retailers.”

New industries emergeAfter crunching data gleaned from the first half of 2015, Doiron’s team is offering retailers new insights into how the Canadian online shopper is evolving. Consumers are shopping with far greater frequency, and branching out in the variety of items they buy online. Typically, categories

like health and beauty along with fashion have dominated e-commerce parcel volume growth, but now industries such as sporting goods and toys/hobbies are catching up and generating double-digit annual growth.

“The exciting a-ha,” says Doiron, “is the realization that shoppers are just now increasing their appetite to buy different items and test

new business models online, like subscription services and grocery delivery – all previously underexplored opportunities.”

The rise of mid-size citiesWhere Canadians are shopping online is also changing. Major urban cities such as Toronto and Vancouver have traditionally fuelled the lion’s share of annual e-commerce parcel volume growth. While they remain near the top of the list, mid-size cities are starting to take the lead.

For instance, in the first eight months of 2015, Windsor, London, Kitchener and Saskatoon had the fastest-growing parcel volumes year-over-year.

“We see shoppers in historically underperforming markets testing waters and becoming very quickly converted. In the Prairies and the Atlantic region, groups of shoppers have become far more engaged around e-commerce.”

The bottom line is that since 2013 e-commerce has continued to post double-digit growth with no signs of slowing. By sharing its e-commerce data, Canada Post aims to help equip retailers with the tools they need to capitalize on this thriving market.

“One of the things we’ve become very passionate about is supporting the Canadian e-commerce market at the small and medium level,” says Doiron. “We want to help them drive their business forward.” DTOW

The data effectHow analyzing parcel volumes can help retailers make better e-commerce decisions

CANADA POST NEWS

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KitchenerSaskatoon

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CANADA POSTSMM INFOPRESSE RESIZECPC 150262PNONE100%1” = 1”8.875” X 10.875”8.625” X 10.625”

10-19-2015 12:36 PM

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A POWERFUL HUMAN REACTION HAPPENS WHEN YOU COMBINE THREE IMPORTANT ELEMENTS. INFOPRESSE

Introducing Canada Post Smartmail MarketingTM. It utilizes the physical qualities of direct mail, new data with precise targeting, and seamless connectivity with other channels. It’s a more intelligent approach to direct mail. And when it’s part of your media mix, it drives action.

TM Trademarks of Canada Post Corporation. The Envelope and Circle Design is a trademark of Canada Post Corporation.

canadapost.ca/smartmailmarketing

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CPC_15_M_0262P_ARM.indd 1 2015-10-19 2:01 PM

We all know that first impressions matter. That’s why retailers focus on optimizing the online experience. It’s where shoppers form their first impressions as they look at products, compare prices, consume content and ultimately place their orders.

However, while first impressions matter, it’s the last impression that leads to repeat sales. In the case of e-commerce, that means delivery. Every retailer should have a delivery promise – and an effective one has three key components.

1 PrecisionDid you know that 70 per cent of online shoppers say it’s important to see shipping times before buying? More significantly, 11 per cent – more than 1 in 10 sales – are lost if they aren’t provided. Precision allows customers to make choices based on their schedule and lifestyle. It makes shopping online easier.

But how do you achieve it? Providing a shipping window at

checkout is as easy as integrating our Web Services, which are available through most major platforms. Narrowing down these windows, though, is the next step, and that requires communication.

It’s important to ensure that your delivery company, distribution centre and third-party logistics provider are in sync with each other. For example, what are the operating hours of your distribution centre? What is the cut-off time for your delivery company to ship the same day? This affects the cut-off time for your customer to place an order and be within a given shipping window.

2 SpeedNot all retailers can deliver as fast as retail heavyweights with national networks of stores and distribution centres. But all retailers can optimize their fulfillment and logistics processes to move products from point A to point B as efficiently as possible. It’s important, however, to ensure your logistics team or solution provider is closely engaged with your marketing department, so promises made to customers are promises kept.

3 Convenience It’s about one thing: choice. One-third of Canadians are not home to receive a parcel during the day. Our research shows 48 per cent of frequent shoppers would buy more if they had more delivery choices, and 67 per cent would be more inclined to buy items of great value when offered delivery options.

Knowing this, Canada Post has made delivery options a focal point of its e-commerce solutions. Our ser-vices like Deliver to Post Office and FlexDelivery™ allow consumers to control where they pick up their

packages; while Delivered Tonight offers same-day service in Toronto, Vancouver and Montréal. We’re also looking to redefine the pickup experience in our post offices and have begun testing new features like 24/7 secure parcel pickup and drive-thru (see page 20).

Retail operations, fulfillment, shipping and delivery may not be the most glamorous side of online retail, but a solid delivery promise can grow your online channel, build loyalty and ensure that your customers’ first impressions last all the way to the next purchase. DTOW

Marc Smith is Director of Strategy and E-commerce Market Development at Canada Post.

By Marc Smith

Fall 2015

Our services like Deliver to Post Office and FlexDelivery allow consumers to control where they pick up their packages; while Delivered Tonight offers same-day service in Toronto, Vancouver and Montréal.

Delivering the Online World 25

Your delivery promise With these three essentials, you can win customers

CANADA POST NEWS

FlexDelivery is a trademark of Canada Post Corporation.

26 canadapost.ca

What was the best part of being a judge?There were some really interesting companies that I hadn’t been exposed to, like Poppy Barley for instance. These are the kinds of companies that can make it across borders because they have good stories, not just good Canadian stories.

Was there an advantage to having a U.S. perspective?As an American judge I didn’t know as much about the companies’ histories or reputations. I looked at their sites and applications – I could provide a more sanitized view.

Any differences between how U.S. and Canadian companies approach e-commerce?A lot of the differences are under the hood. For instance, there are differences in how companies spend on marketing, and there’s less spending on Google search, so as a result you just don’t see Canadian retailers as penetrated yet.

How can Canadian companies best take advantage of online retail?In a market like Canada that is relatively small but where there’s so

much creativity, the Internet really can enable the elimination of borders. Whether it’s through your own branded site or partnering with other sites and getting distribution in global markets through online marketplaces – it’s a great way to get what it is you do out there to a really broad audience.

How can companies improve their success online?A lot of it is just getting the basics of e-commerce selling right: product detail pages, getting good photography particularly if you’re an aesthetic brand, ensuring that your checkout is strong, and of course having a responsive design ap-proach. Most of your traffic now is going to come through some sort of mobile device and you want to make sure that it renders properly.

Biggest challenge for new companies?It’s an incredibly competitive world and there are millions and millions of e-commerce sellers. You really do need to have a unique product that stands for something and that is something that people want. Then you have to find a way to leverage the tools online to match the

demand that exists to your product. It’s not easy.

Are customer expectations for low price and fast delivery shaping the market?It’s not customer expectations, but Amazon that has shaped the market. You basically have a company that is able to do things faster and cheaper and it’s a different business model. It’s really hard and dangerous for other merchants to try and play that game, because you can’t compete and if you do compete you will have zero profits. Amazon can get away with that – you can’t.

So how do companies compete?I think you have to pivot and find new products or new markets or new customers. You have to do something different – you can’t swim in those waters. There’s a Harvard Business School book called Blue Ocean Strategy that talks about this – how you can’t be in this red ocean where the sharks are all bloody and fighting over one another. You have to go find other places to compete. You have to find blue ocean. DTOW

Sucharita Mulpuru-Kodali, Vice-President and Principal Analyst at Forrester Research, was a judge at this year’s E-commerce Innovation Awards. She sat down with us to talk Awards, Canadian e-commerce and the perils of swimming in shark-infested waters.

Q&Awith Sucharita Mulpuru-Kodali