When we heard that Ebates, a predominate US based cash back affiliate was opening its offices in Toronto the Share Results team was eager to meet with Adrienne General Manager to discover their thoughts on the Canadian Retail space.
Cash back program for online Canadian Shoppers
Q: What would you say is the primary difference between a US consumer and Canadian consumer?
A: Canadians have such low expectations when it comes to retail. Even when we hear about a big US chain coming to Canada we immediately assume the prices won’t be as good as they should be, or the selection won’t be the same as it is in the US. And we’re often right! The experience in Canada just isn’t great. Prices are usually higher, discounts aren’t as deep, and the variety and availability of goods isn’t what it is in the US. Canadian consumers are used to either paying more, or having to jump through hoops to cross-border shop and pay duty in order to get the amazing deals and product selection that Americans take for granted.
Q: If you ask a Canadian retailer to change one thing to make their ecommerce more successful, what would it be?
A: Free shipping! No question about that one. I believe steep shipping costs are the number one impediment to the growth of online shopping in Canada behind the problem of selection and availably of goods that are available for Canadians to buy online.
Q: What factors do you consider when deciding to promote one offer over another?
A: Ebates is all about cash back, so our members are always looking for increases in cash back percentages. A double cash back offer that takes a normal 4% rebate up to 8% will do amazingly well. When’s the last time a retailer could double their revenue week over week with a 4% off sale?
If retailers can add a percentage off sale specifically for Ebates members on top of a doubling cash back, that combination wins every time.
Q: What are some of the trends that you see emerging in affiliate marketing in the coming years?
A: Mobile is really the next big hurdle for the industry. There’s already an increased focus there with the big publishers, but as Canadians grow more comfortable purchasing on their tablets and smartphones, Canadian publishers will need to be ready. I also think video is an important component. eMarketer just published some really interesting stats this week. Product videos and video testimonials encourage purchase decisions more than any other tactic. Publishers and advertisers alike will need to invest to make sure video quality is high, and that it can be done well to scale.
Q: What kind of challenges would a publisher face coming into the Canadian market?
A: The Canadian market is obviously smaller, but it’s also somewhat more engaged. Given the higher shipping costs associated with purchases in Canada, Canadians tend to have a higher average order value, and more items in their carts. Price parity and selection is also often a challenge when dealing with big name merchants that have separate businesses in the US and Canada. The loyalty space is extremely competitive in Canada with some very big players. Even still, we see a great opportunity here for Ebates. Cash back is a relatively new concept that will likely resonate very well with Canadians. It’s a simple and transparent concept, no catch, no strings attached.
Adrienne Down Coulson | General Manager, Ebates Canada
About Adrienne:
Adrienne oversees all channels of marketing and sales for Ebates Canada. She brings more than fifteen years of interactive marketing knowledge, having previously served in executive management positions in marketing, sales, and business development.
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