On Thursday, Dollarama will be launching an online store in Quebec as part of a pilot project to expand e-commerce offerings across the country. The Canadian dollar store chain will sell items in bulk at a fixed delivery price of $18. Shoppers will have over 1000 items from Dollarama's online inventory to choose from. Dollarama's bulk shopping model for online purchases is similar to Costco Canada's. It could eventually become Costco's direct competition, as well as other retailers like Walmart and Amazon Canada.
A media relations rep for Dollarama told Narcity that Quebec's online store will serve as a test for the store's e-commerce platform. Before rolling it out across Canada, Dollarama will have to survey the results and see if any improvements or enhancements can be made.
The Dollarama rep says that the purpose of the online store is to sell merchandise by the case-full. In other words, if you need to buy a specific item in large quantities, Dollarama's online shop is the place to look. Sounds like the ideal setup for party planners who need to buy decorations and printed napkins in bulk.
"We are somewhat introducing a new concept, you know, built for Costco, in the concept of selling things by the case and not by the unit," Dollarama's Chief Executive told the Financial Post in March. Unlike Costco, Dollarama doesn't require a paid membership to shop.
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The online store will provide Dollarama with a nice additional revenue stream. Which they certainly need, after losing the trust and loyalty of many of their Canadian customers on several occasions.
Dollarama toys have been recalled twice due to dangerous chemicals. Canadians also claim that Dollarama can hardly be called a dollar store anymore because their prices aren't as attractive as they used to be. Hopefully, the online store will allow Canada's largest dollar store chain to redeem itself in the eyes of Canadian shoppers.