Electronic Commerce in Canada

Highlights from the 2003 Survey of Electronic Commerce and Technology (SECT)

Based on The Daily, April 16, 2004, Statistics Canada

  • 78% of firms used the Internet in 2003 and they accounted for 97% of gross business income
  • Online Internet sales increased by 40%, reaching $19.1 billion in 2003, up from $13.7 billion in 2002 with B2C sales rising 51%
  • High-speed Internet use rising
    • 66% of all private companies used broadband to connect to the Internet in 2003, up from 58% the previous year
    • 95% of large private firms had high-speed access
  • Domestic sales increased 55.2% in 2003 to $5.7 billion, accounting for all of the growth in online sales while exports' dollar value fell slightly
  • Leading sectors selling online are the information & cultural industries, educational services (private sector), wholesale trade, manufacturing, and retail trade

Canada's Internet Sales Posted Strong Gains

  • Internet sales in Canada continued to grow in 2003, up 40% from 2002 accounting for less than 1% of total operating revenues for private firms
  • Private firms accounted for $18.6 billion of online sales (approximately 97% of total sales)

Value of Canada's Total Internet Sales (1999-2003): 1999=4.2 billion, 2000=7.2 billion, 2001=10.4 billion, 2002=13.7 billion, 2003=19.1 billion

Domestic Sales Account for All of the Growth in Online Sales in 2003

  • Domestic sales increased 55.2% to $16.6 billion in 2003
  • The domestic market accounted for 87% of total sales, up from 78% in 2002
  • Online e-commerce share to foreign markets fell from 22% to 13% in 2003
  • Dollar value of export sales fell from $2.9 billion in 2002 to $2.4 billion in 2003
  • Manufacturers accounted for the highest value of exports, shipping $753 million or 30% of their total online sales outside the country

Share of B2C Sales Keeps Rising

  • The dollar value of B2C sales rose 51% to $5.5 billion in 2003
  • B2B sales reached $13.1 billion, up 35.2% in 2003

Business-to-Consumer Online Sales Share (Total Dollar Value e-Commerce) : 2001=22%, 2002=27%, 2003=30%

Five Sectors Account for 73% of Online Sellers

  • Wholesale trade topped all other industries with almost $4.5B in Internet sales
  • The retail sector had the highest percent of Internet sales to consumers, 81.6% in 2003, down from 84.6% in 2002
  • B2C sales rose 51% to $5.5 billion in 2003 while B2B sales reached $13.1 billion, up 35.2%

Major Increase in High-Speed Internet Adoption

  • Both broadband access and online sales are concentrated in large private companies (more than 500 employees)
  • 95% of large firms had high-speed Internet and accounted for 45% of online sales in 2003

Percentage of Firms Using High-Speed Internet (2001-2003): Private Sector: 2001=48.4%, 2002=58.4%, 2003=66.3%, Public Sector: 2001=86.5%, 2002=93.2%, 2003=95.3%

Internet Use and Presence of Websites on the Rise, but Obstacles Exist

  • One in three firms that do not sell online said e-commerce was incompatible with their current business model
  • Concerns about online selling include security issues and the cost of creating and maintaining an e-commerce-enabled website

Internet Activity, Private Sector Firms, 2000 & 2003: Internet Use 2000=63.4%, 2003=78.2%, Purchase Online 2000=18.2%, 2003=37.2%, Have a Website 2000=25.7%, 2003=34%, Sell Online 2000=6.4%, 2003=7.1%

Source: Survey of Electronic Commerce and Technology 2003, The Daily, April 16, 2004, Statistics Canada