Statistics Canada
Symbol of the Government of Canada

E-commerce on the rise

Warning View the most recent version.

Archived Content

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.

Trade in the 21st century has quickly moved in the direction of electronic commerce. The resources—information systems, website development and marketing efforts—that businesses are applying to e‑commerce have been on the rise for the past few years. In 2004, as a result, the value of online sales in Canada increased for a fifth consecutive year, hitting $28.3 billion.

The majority of e-commerce trade is made from one business selling goods and services to another business (B2B). These types of transactions amounted to $20.2 billion in 2004, 71% of total e-commerce sales. E-commerce sales from businesses directly to consumers rose from $6.5 billion in 2003 to $8.1 billion in 2004, but its share of total e-commerce trade dropped from 34% to 29%.

Chart: E-commerce, total sales over the InternetMost businesses are using the Internet for purchasing rather than selling. In 2004, 42% of private businesses used the Internet to purchase goods or services, while only 7% used the Internet to sell.

Of the industries that do sell over the Internet, wholesale trade businesses have the largest amount of sales—$6.1 billion in 2004. Transportation and warehousing, manufacturing and retail trade businesses also reported a large value for e-commerce sales.

The general Internet capabilities of businesses have been on the rise as well. In 2004, 82% of private firms had access to the Internet and 37% had their own website. This is a significant increase from 2000, when only 63% of firms had access to the Internet and 26% had a website. Firms connected to the Internet accounted for 97% of Canada’s gross business income in 2004.