Internet shopping has become more mainstream for Canadians, data suggest

Almost $12.8 billion worth of shopping orders were placed online in 2007 - 61 per cent increase from the previous survey in 2005, Statistics Canada said Monday in releasing its most recent figures.

The purchase of more personal items was making e-commerce more common.

Clothing, jewelry and accessories was the fourth most popular category in online shopping at 29 per cent after travel, the purchase of books, magazines and online newspapers, and entertainment products such as tickets for concerts and sporting matches.

"When you start seeing items like clothing, jewelry and accessories, even though younger people are more likely to buy that and music as well, it's becoming more mainstream, said Larry McKeown of StatsCan's Science, Innovation and Electronic Information division.

"It's still very concentrated, but that's one indication that online shopping is more mainstream," McKeown said.

The survey indicated consumers were using it to supplement going to stores, he said, adding they were also using it for window shopping and price comparisons.

"Online shopping is actually complementary to traditional retail," McKeown said, adding that online window shopping for big ticket items like cars, TVs and furniture is common.

"People don't buy these online. What they do is comparison shopping. So when they go into the store, they already know all of the specs. They're very knowledgeable consumers."

The Retail Council of Canada said many retailers also use their websites to bring people into their stores.

"Many simply use the website as a showcase tool to show consumers what they offer and what prices they are offering, and that's going to continue to be a very very important tool as we head into 2009," said Derek Nighbor, the council senior vice-president of national affairs.

Canadians have been slower than Americans to adopt online shopping, Nighbor said, adding that six per cent of all American retail sales were online compared with about two per cent in Canada.

Nighbor said while this season's holiday sales in Canada are expected to be better than in the United States, they will be a "softer" than the past few years.

The Statistics Canada survey also found that 45 per cent of Canadians used the Internet for travel services and arrangements, up nine per cent in 2005, the survey said.

The busiest online shoppers were between the ages of 25 to 34 because they had credit, money and were more comfortable online, said McKeown.

More than 8.4 million Canadians aged 16 and over made an online purchase in 2007, up from nearly 6.9 million in 2005. They accounted for 32 per cent of Canadians in this age group, compared with nearly 28 per cent in 2005.

McKeown said 16 and 17 year olds, the vast majority of whom use the Internet, were included in the study for the first time to allow for global comparisons.

About 82 per cent of Canadians paid directly online for some or all of their purchases, up from 75 per cent in 2005.

Even so, 77 per cent of these online consumers expressed concern about online credit card use.

"There's a healthy level of concern but it doesn't represent a barrier to shopping online. The longer you have been online the more comfort you have," McKeown said.

The survey also found that the top 25 per cent of online consumers spent an average of $5,000 during 2007 and were responsible for almost half of orders placed and 78 per cent of the total dollar value.

Regionally, Albertans were the heaviest online shoppers in 2007, with one half of those surveyed placing an online order.

The survey is done every two years by the federal agency. More than 26,500 Canadians aged 16 and over were asked about their Internet use for a 12-month period.