Industry committee  Ultimately as we all know, a lot of the goods do come from China. Our customers are Canadian bricks and mortar companies. That's whom we deal with. We do see a lot of goods coming in from the U.S. Those are dealt with by our U.S. parent, not by us. We do see a lot of growth and a lot of interest; there isn't a day that goes by where there isn't a company looking to get in, trying to figure out how to do it.

Industry committee  Yes.

Industry committee  The smaller the country, the greater the density, so your total shipping costs are going to be lower in many small countries. There are parts of Canada that are tremendously expensive to bring transportation to. There are other spots where it's economical. Some of the best rates in the world can be in the GTA and southern Ontario.

Industry committee  If I look at our cost to serve in Canada versus the United States, it is significantly lower in the United States. The density is there. They don't have our vast space with no population. The overall cost to serve is significantly lower as a result.

Industry committee  That person is going to need to look where they are, and might need to be innovative in getting their products to market. Shipping from your back door on an individual basis may not be the most economical thing. Maybe you need to do a hybrid movement where you move goods in bulk to Toronto and distribute out of Toronto, or use a third-party logistics warehouse to do that distribution for you while you run your business from a remote area.

Industry committee  I don't have an exact number. My estimate would be that it's somewhere in the 20% to 30% range, but that sector is growing at about double the rates of brick and mortar companies.

Industry committee  I guess one example is our making the information about the transaction visible, both within the company and externally. For example, for purchases online, we're making all of the transactions that happen and the transportation visible to both parties, so there's confidence that the goods you purchased were in fact shipped and are moving on their way.

Industry committee  Certainly industry as a whole has a role to play, but individual companies also need to step up to the plate, using things like third-party validations and making it easy for their consumers. I read a study a while ago from McKinsey, I believe, that indicated that something like 89% of people buying online will be influenced by the use of security and the ease of making a return if their purchase is unsatisfactory.

Industry committee  My comment there would not about an obstacle but is an observation. The cost of setting up e-commerce, getting it up and running and completing a first shipment, is similar in Canada and the United States when you look at the total cost. One of the realities is that their domestic market is much bigger.

Industry committee  No, I'm not talking of just the Internet service.

Industry committee  In some markets, I think it is more expensive. Although, when you look at the total cost of getting up, getting a warehouse, getting your product, and getting ready to sell, I think your total cost is going to be similar north and south of the border.

Industry committee  That's right.

Industry committee  Yes. We have tools that we make available to e-tailers to help them determine in advance the duties, taxes, and brokerage fees to about 100 different countries in the world, as well as to import into Canada, if they choose to use those.

Industry committee  A lot of it boils down to the total cost. When a consumer is looking at buying a product online, whether for personal or business use, they're asking, “What's it going to cost me when it arrives at my door?” If it's coming from outside the country, that needs to include the duties, taxes, brokerage, shipping, and any other fees that may be associated.

Industry committee  From a lot of the available providers, both through transportation companies and logistics companies, there are a tremendous number of technology companies out there that have prepackaged products which customers can quite easily get up and running in starting their businesses. These products may not take them where they ultimately need to go, but they can get them running.