US online sites rack up record sales at Canadian e-retailers' expense

The high-flying loonie is driving online shoppers to seek bargains on US-based shopping sites.

As shoppers gear up for the holiday shopping frenzy, American online retail sites are reporting record sales at the expense of their Canadian counterparts, according to e-commerce specialists.

Industry insiders do not have any numbers yet, but they say U.S. Web sales are being boosted by thehigh-flying loonie that is driving both outlet mall and online shoppers to seek bargains south of the border.

"Just as our bricks and mortar shops are getting hammered by the falling greenback, so are our online stores," said Nick Dumitru, principal of Basis, a Web marketing firm in Toronto.

He said most insiders expect a 20 per cent drop in e-retail profits this Christmas season.

For years Canadians have crossed the border in search of bargains and greater selection even when the Canadian dollar traded way below the U.S.

more...

Pages