Ecommerce Sector Growth And Composition


Ecommerce web growth continues to accelerate on a worldwide basis as more consumers gain confidence to transact on the internet, traditional business shifts its service provision to ecommerce platforms and internet access levels in both developed and underdeveloped countries continues to increase. The following information provides a breakdown of the contribution to economic ecommerce growth. The reported statistics are from the US Census Bureau E Stats publication and outline the sector composition and growth rates over the 2000 to year 2005 period.

In the May 2007 edition of the US Census Bureau E Stats publication, it has been reported that business to business transactions by manufacturers and merchant wholesalers accounted for most ecommerce (92 per cent). Trade data indicates that during the period 2000-2005 ecommerce growth for manufacturing continues to outperform merchant wholesale trade followed by retail trade and selected services. As a percentage of total sales, e-commerce sales of merchant wholesalers grew more slowly than total sales.

Ecommerce Growth Rates And Trends:

From 2000 to 2005 manufacturing e-shipments increased at an average annual growth rate of 11.4 percent compare to 2.5 percent for total shipments during the corresponding period.

During 2000 to 2005, e-shipments as a share of total shipments were largest in the transportation equipment group, beverage and tobacco sectors.

The growth of ecommerce sector contributions in value terms: Manufacturing: Transportation and Equipment – 29 per cent

Chemicals – 13%

Petroleum and Coal Products – 8%

Food Products – 8%

Computer and Electronic Products – 7%

Merchant Wholesale trade: In the 16 industries that were recorded, four industry groups stood out contribution wise. Drugs and druggists, sundries, motor vehicles and automotive equipment, and professional equipment and grocery products accounted for 69% of total e-sales.

Retail Trade: Form the period 2000 to 2005, retail e-sales increased at an average annual growth rate of 27.3 percent compared with 43% for total retail sales. Over 90% of retail sales were accounted for by non-store retailers (73%) and motor vehicle parts dealers (18%).

Selected Service Industries: From 2002 to 2005 ecommerce revenues in the selected service industries sector increased at an average annual growth rate of 26.5 percent compared with 6.9 percent for the total revenue of the selected services industries. The two largest sub sector contributions came from the publishing and travel reservation services (23 percent collectively).

Ecommerce growth is expected to continue to accelerate in the years to come as emerging markets integrate into the world economy and as more countries join the world trade organization.

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