hese missed opportunities are another major implication. SMEs could be left behind in favour of other businesses that have websites. Websites are not only an important e-commerce tool, but it can be a useful source of information for consumers. Therefore SMEs that choose to not create a website could find it difficult to compete or differentiate themselves in a market where their competitors have websites. Research by the Canadian Internet Registration Authority (CIRCA) found that consumers tend to view SMEs without websites less favourably.

A CIRCA (2016) Internet Tracking Study found that Canadian consumers are less likely to trust businesses without a website. The study also found that consumers thought SMEs without a website looked less credible (CIRA, 2016).

By not having a website, most SMEs in Canada are missing a large opportunity for e- commerce sales in the B2B sector. Laudon and Traver (2017) explains that business to business (B2B) sales is the largest form of e-commerce in the U.S. with over $6.7 trillion USD in transactions in 2016. In Canada, e-commerce has become an important part of the B2B retail landscape. A study by Forrester Consulting commissioned by Purolator (2016) found “B2B online selling is already a major part of doing business in Canada” today. Of the 400 retailers surveyed by Forrester Consulting, half of B2B sellers indicated that over 25% of their sales took place online. Purolator (2016) warned that “firms that avoid online selling risk falling behind” in favour of other sellers that embrace e-commerce and changing consumer behaviour (1).

The third implication of these findings is related to the risk of falling behind. Canada

Post (2016) estimates that e-commerce sales in Canada will continue to grow by double digits annually. In 2019 retail e-commerce sales in Canada are expected to increase to $49.67 million CAD up 13% from 2018 (Canada Post, 2016). Similarly, in 2020 retail e-commerce sales in Canada are expected to increase by 12.3% to $55.78 million CAD (Canada Post, 2016). This increases in retail e-commerce sales will be primarily driven by a channel shift which describes a shift in purchase preferences among consumers (Canada Post, 2016).

This channel shift will see consumers begin to purchase products online they once purchased offline leading to a shift in sales between offline to online channels. Given this shift in consumer purchase preferences the future looks bright for e-commerce merchants in Canada. However the same cannot be said for SMEs in the retail and wholesale sectors that fail to adopt e-commerce capabilities. These SMEs may be at risk of being displaced as consumer preferences shift to digital channels. However, it’s important to note that Canada Post (20