Journal of Electronic Commerce

Journal of Electronic Commerce

Opportunities and Threats of the Metaverse for Electronic Commerce in Canada

Document Type : Original Article

Authors
Sarah Sarah 1
David Lee 2
Emily White 3
Seyed Hamed Rezaei 4
Alex Tremblay 5
1 Assistant Professor of Marketing, Rotman School of Management, University of Toronto, Canada
2 Professor of Information Systems, Sauder School of Business, University of British Columbia, Canada
3 Senior Researcher in Human-Computer Interaction, School of Computer Science, McGill University, Canada
4 Master of Management, Islamic Azad University, Tehran, Iran
5 Professor of Digital Strategy and Innovation, HEC Montréal, University of Montreal, Canada
joecm.3.2.15564.35125656565003
Abstract
The metaverse represents the next evolutionary phase of the internet, promising a persistent, immersive, and interconnected virtual world that fundamentally reshapes digital interaction and commerce. While its global transformative potential for electronic commerce (e-commerce) is widely acknowledged, a systematic exploration of its specific opportunities and threats within distinct national contexts, such as Canada, remains largely underexplored. This study addresses this critical research gap by rigorously analyzing the multifaceted implications of the metaverse for e-commerce in Canada, considering its unique technological, socio-economic, and regulatory landscape.
Adopting a qualitative research design, we conducted comprehensive semi-structured interviews with 20 key stakeholders across Canada, including technology innovators, e-commerce executives, digital marketing professionals, legal experts, academics, and government officials. Thematic analysis was employed to synthesize their diverse perspectives and identify emergent patterns.
The findings reveal substantial opportunities for Canadian e-commerce. These include the capacity to revolutionize customer experience through immersive shopping environments, personalized marketing, and virtual try-ons, fostering deeper engagement and brand loyalty. The metaverse also unlocks new revenue streams via the sale of digital goods, Non-Fungible Tokens (NFTs), virtual real estate, and innovative advertising models. Furthermore, it enables expanded global market reach for Canadian businesses, particularly SMEs, and drives innovation and competitive differentiation by pushing firms towards advanced digital capabilities. The generation of richer behavioral data also promises unprecedented consumer insights.
However, the study also highlights significant threats. Foremost are technological hurdles and infrastructure constraints, including the demand for high bandwidth, the cost of hardware, and critical issues of interoperability between platforms. Cybersecurity and privacy risks are magnified, with particular emphasis on compliance challenges under Canada's stringent Personal Information Protection and Electronic Documents Act (PIPEDA). Regulatory and legal ambiguities concerning jurisdiction, intellectual property rights, and taxation within virtual economies pose considerable uncertainty. Challenges related to user adoption, the digital divide, and ensuring equitable access across Canada's diverse population are also prominent. Finally, market fragmentation due to proprietary platforms and potential ethical concerns require careful navigation.
This research contributes theoretically to e-commerce and digital transformation literature by providing a nuanced, context-specific analysis of metaverse adoption. Managerially and for policymakers, the findings offer actionable recommendations: Canadian businesses must strategically invest in experiential VE design, prioritize robust privacy and security measures, and explore digital asset monetization. Policymakers are urged to develop adaptive regulatory frameworks, strengthen digital infrastructure, and promote digital literacy. Ultimately, while the metaverse offers immense potential for Canadian e-commerce, its successful integration hinges on strategic foresight, proactive risk mitigation, and a commitment to inclusive, ethical innovation tailored to Canada's unique characteristics.
Keywords
Metaverse
Electronic Commerce
Canada
Opportunities
Threats
Digital Transformation
Virtual Reality
Non-Fungible Tokens (NFTs)
Privacy
Regulation
Consumer Behavior
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