es that more Canadians will begin to shop online in the future. A 2018 report by Forrester Research indicates that Canadians spending per year is expected to increase by 54% in 2019. These statistics point to a strong trend of growth in e- commerce and a healthy Canadian retail sector.

Opportunity

Researchers point to the rapid growth of retail e-commerce sales in Canada as a great opportunity for SMEs to find consumers particularly in new markets. Gessner and Snodgrass (2015) explain that increased cross-border trade are one of the many benefits for Canadian SMEs that adopt e-commerce capabilities. Citing research by O’Brien (2015) the authors suggest that Canadian SMEs should look no further than the US for inspiration. O’Brien (2015) explains merchants in the U.S. have benefited from Canada’s appetite for products from the U.S.. A report by Microsoft (2015) on cross-border shopping estimates that two-thirds of Canada’s online shoppers have made purchases from U.S. merchants. This report by Microsoft (2015) adds further support to the position held by Gessner and Snodgrass (2015). It found that Canadian SMEs could see a 25% increase in revenues if they sold both online and cross- border (Microsoft, 2015). While a large sales opportunity exists for Canadian SMEs in the U.S., Gessner and Snodgrass (2015) explain that relative few SMEs have taken advantage of e- commerce and cross-border opportunities.

Reports by Sweet (2012) and PayPal (2017) help explain why SMEs have failed to adopt e-commerce capabilities. In a Report of the Standing Committee on Industry, Science and Technology, MP David Sweet (2012) attributed the disinterest of SMEs in adopting e-commerce capabilities was primarily due to their high costs. Sweet (2012) concludes that SMEs simply do not believe the costs justify the investment. Five years later the negative sentiment among SMEs has not changed. A study by PayPal (2017) on the Canadian Small Business Landscape found that only 7% of Canadian SMEs had an e-commerce enabled website. While 71% of SMEs indicated they would never consider selling online, and 34% of SMEs did not plan to build a website in the future (PayPal, 2017). The study found concerns related to levels of service, online fraud, order fulfillment and a limited understanding of technology as the main barriers to adoption. The lack of e-c