OTTAWA – Online sales in Canada increased at a double-digit pace for the sixth consecutive year in 2007, Statistics Canada announced today. Total private and public sector Internet sales hit an estimated $62.7 billion last year, up 26% from 2006, according to Statcan.
However, e-commerce still represents a relatively small fraction of total economic activity. In 2007, online sales of private sector firms accounted for just under 2% of total operating revenue, although this was still an increase from less than 1% five years earlier, Statcan said.
Furthermore, while online sales increased, the proportion of private sector companies that reported selling goods and services online last year remained stable at about 8%. In the public sector, roughly 16% of organizations reported e-commerce sales.
In general, private sector businesses dominated online sales in 2007, with e-commerce in that sector increasing 25% to $58.2 billion. Public sector e-commerce rose 30% to almost $4.5 billion.
In the private sector, business-to-business sales accounted for 62% of online sales in 2007, down from 68% in 2006. Accordingly, the proportion of online business-to-consumer sales climbed to 38% last year from 32% in 2006.
Statcan estimates that customers outside Canada generated almost 19% of online sales in the private sector, similar to the last two years.
Looking forward, it appears that private sector firms remain more likely to purchase goods and services online than to sell them online. According to Statcan, the proportion of firms purchasing goods and services online has been increasing steadily since its survey began, while the proportion of firms selling online has remained stable.
In 2007, 48% of private sector firms purchased goods and services online, compared with only 8% selling online. In the public sector, an estimated 82% of organizations made purchases online in 2007, compared with 16% who reported selling online.
