The Impact Of Logistics Services On E‐Commerce In Canada

Industry Canada has published a research paper in 2013 that mentions spice™ Technology Group Inc. as a “Targeted Logistics Service Provider". The research paper suggests that we are a technology services company that integrates e-Commerce websites within the client company and with their logistics service providers.

Executive Summary

This study, authored by Dr. Alan Saipe and commissioned by Industry Canada, is investigating whether Canada has the right economic framework to foster a thriving e-commerce marketplace, and, in particular, examining the role of logistics services. The work was done in the first quarter of 2013.

They conducted interviews with and gathered survey data from across section of e-commerce companies, including B2B and B2C companies; small, medium sized and larger companies; and companies based in and around Toronto and in and around Vancouver.

They found that:

  • Larger e-commerce companies tend to have lower unit delivery costs and lower overall logistics costs as a percent of revenue
  • There are differences in logistics models of B2B and B2C e-commerce companies
  • E-commerce transportation and warehousing costs are lower in the Unite States then in Canada
  • The scale of businesses and the geography of the US are more conductive to lower logistics costs
  • The availability of logistics services for e-commerce does not appear to be a problem
  • The pricing of parcel delivery has been a problem for some e-commerce companies – particularly smaller e-tailers

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