Zappos Closes Shop in Canada

[fredr123]

http://www.techdirt.com/articles/201...problems.shtml

I guess this means the system is working, right? Keep cheaper foreign competition from coming into Canada and overtaking local manufacturers. This is what Canadians want, right?

Between this and licensing/CRTC issues preventing me from watching what I want in Canada, it's going to come to a head pretty soon... I hope.

[iggyformayor]

The idea is to protect Canadian retailers as well. It's impossible for them to match the pricing provided to the consumer in the US, and if you can buy it cheaper online and have it shipped across the border why wouldn't you? Eastbay.com did the same thing last year. They shipped to Canada for the longest time until they were forced to stop.

[Ducay]

Originally Posted by iggyformayor

The idea is to protect Canadian retailers as well. It's impossible for them to match the pricing provided to the consumer in the US, and if you can buy it cheaper online and have it shipped across the border why wouldn't you? Eastbay.com did the same thing last year. They shipped to Canada for the longest time until they were forced to stop.

Not sure how I feel about this; you really think its the governement's goal to slow down international trade via customs on internet orders?

Even though prices may be slightly cheaper online from US retailers, still such a small portion of consumers buy everyday items online that I doubt it makes a significant impact on retailers.

Besides, pretty much every major retailer in Canada is American anyways....

[GreenTeaFrapp]

I think Amazon is making a fuss in the hopes of making things go easier for them in the future. Zappos Canada pretty much sucked compared to the American version. If things were really that bad, why haven't they shut down Amazon.ca as well?

[iggyformayor]

Originally Posted by Ducay

Not sure how I feel about this; you really think its the governement's goal to slow down international trade via customs on internet orders?

Even though prices may be slightly cheaper online from US retailers, still such a small portion of consumers buy everyday items online that I doubt it makes a significant impact on retailers.

Besides, pretty much every major retailer in Canada is American anyways....

It wasn't direct pressure from the gov't that caused them to shut down, it was from other retailers within Canada. There are still a large number of major retailers owned and run within Canada.

For example, the company I work for is working hard at growing their share of the EComm marketplace. When consumers can buy the same product we carry for half the price online from an American retailer, why would they buy it from us? The price difference isn't small, there can be a huge difference between the MSRP in Canada and the US, and when they pay a fraction of what we do at cost, there's no possible way for us to match it.

The ECommerce business has grown exponentially in the last few years. Also, if you look at the layout of Canada and where people live, the ability to buy products online that aren't available to you unless you make an 8 hour drive is a major convenience that wasn't there before, as well as an untapped marketplace for retailers in Canada to reach out to.

[mykalberta]

Originally Posted by iggyformayor

The idea is to protect Canadian retailers as well. It's impossible for them to match the pricing provided to the consumer in the US, and if you can buy it cheaper online and have it shipped across the border why wouldn't you? Eastbay.com did the same thing last year. They shipped to Canada for the longest time until they were forced to stop.

Eastbay still ships to Canada (I just ordered soemething from them last week). I would order more but their 30% border charge on top of every order makes me not order as much.

[TylerSVT]

[mykalberta]

Originally Posted by iggyformayor

It wasn't direct pressure from the gov't that caused them to shut down, it was from other retailers within Canada. There are still a large number of major retailers owned and run within Canada.

For example, the company I work for is working hard at growing their share of the EComm marketplace. When consumers can buy the same product we carry for half the price online from an American retailer, why would they buy it from us? The price difference isn't small, there can be a huge difference between the MSRP in Canada and the US, and when they pay a fraction of what we do at cost, there's no possible way for us to match it.

The ECommerce business has grown exponentially in the last few years. Also, if you look at the layout of Canada and where people live, the ability to buy products online that aren't available to you unless you make an 8 hour drive is a major convenience that wasn't there before, as well as an untapped marketplace for retailers in Canada to reach out to.

With free trade why can you not purchase from the same wholesaler in the US that other companies do. Doesnt it have more to do with a volume issue and much less competition up here.

[HOOT]

Originally Posted by mykalberta

Eastbay still ships to Canada (I just ordered soemething from them last week). I would order more but their 30% border charge on top of every order makes me not order as much.

They must ship UPS or Fedex??

If you do your own customs you can have it done for $5 and a bit of your time. Or ask them to ship USPS/Canada Post.

[fredr123]

Originally Posted by mykalberta

With free trade why can you not purchase from the same wholesaler in the US that other companies do. Doesnt it have more to do with a volume issue and much less competition up here.

Maybe there are distribution agreements and licensing issues as well?

[Deelow]

Originally Posted by iggyformayor

For example, the company I work for is working hard at growing their share of the EComm marketplace. When consumers can buy the same product we carry for half the price online from an American retailer, why would they buy it from us? The price difference isn't small, there can be a huge difference between the MSRP in Canada and the US, and when they pay a fraction of what we do at cost, there's no possible way for us to match it.

But why should that be my problem?

[Ducay]

Originally Posted by iggyformayor

It wasn't direct pressure from the gov't that caused them to shut down, it was from other retailers within Canada. There are still a large number of major retailers owned and run within Canada.

For example, the company I work for is working hard at growing their share of the EComm marketplace. When consumers can buy the same product we carry for half the price online from an American retailer, why would they buy it from us? The price difference isn't small, there can be a huge difference between the MSRP in Canada and the US, and when they pay a fraction of what we do at cost, there's no possible way for us to match it.

The ECommerce business has grown exponentially in the last few years. Also, if you look at the layout of Canada and where people live, the ability to buy products online that aren't available to you unless you make an 8 hour drive is a major convenience that wasn't there before, as well as an untapped marketplace for retailers in Canada to reach out to.

Why should I pay more because your company is inefficient and can't compete on a global scale? And why should I pay more because Canadian Retailers are behind the times?

This is Canada 2011, not protectionist Japan circa 1851

[Table 5]

Half of my apartment is full of packages from American online retailers my Canadian-residing family shops from, packages which they pick up later or I take to Calgary. It's kind of ridiculous how 2nd-rate Canadian shopping options are.

[OilKiller]

Originally Posted by Ducay

This is Canada 2011, not protectionist Japan circa 1851

Are you sure?

Pretty sure Canada and Japan are the only two countries who block foreign satellite signals in the world. They keep competition out that way and allow local satellite and cable companies to rake in billions of dollars as opposed to giving Canadians a choice.

[Vansmack]

^ you have a choice, but they all suck.

[OilKiller]

Originally Posted by Vansmack

^ you have a choice, but they all suck.

No, having a choice would not force Global/CTV/City/Etc. down our throats.

Anyway, I suppose we shouldn't take the thread OT.

[iggyformayor]

Originally Posted by Deelow

But why should that be my problem?

Not saying it's your problem, but it IS competition and business and that's how it works. Not saying you should like it, of course everyone wants lower prices.

[iggyformayor]

Originally Posted by Ducay

Why should I pay more because your company is inefficient and can't compete on a global scale? And why should I pay more because Canadian Retailers are behind the times?

This is Canada 2011, not protectionist Japan circa 1851

Prices are much higher all over the world, especially in Australia and the UK. It's because our prices are compared to the US and they generally have the lowest prices which makes ours seem exceptionally high. If you think we're the only ones that pay higher prices you're kidding yourself. It's not about the company being inefficient, it's how the market works. The exact same reason why you pay so much more for a car in the US than you do here.

[mykalberta]

Originally Posted by HOOT

They must ship UPS or Fedex??

If you do your own customs you can have it done for $5 and a bit of your time. Or ask them to ship USPS/Canada Post.

They ship USPS and they wont allow you to use your own customs agent. Its a tax they charge for shipping outside of the US.

[mykalberta]

Originally Posted by OilKiller

No, having a choice would not force Global/CTV/City/Etc. down our throats.

Anyway, I suppose we shouldn't take the thread OT.

You mean like the Panagea of choice south of the border, ABC, CBS, NBC, FOX ? and really only 3 of those are major networks.