E-commerce Intensity

Abstract

This chapter focuses on e-intensity indicators, in particular on the use of the Internet to purchase and sell, as well as on the nature and volume of electronic commerce transactions. In the aftermath of the "dot com" crash, many "virtual" start-ups that sold and/or purchased exclusively on line have disappeared. Overall, the growth of electronic commerce transactions has been less spectacular than some consultants had predicted. On the other hand, newly available official statistics show that, while still small, the volume of electronic transactions is growing and that the Internet is increasingly being used as a channel for transactions, especially purchases. The chapter begins by defining what is meant by electronic commerce transactions and by highlighting some of the relevant measurement issues. Available and comparable official statistics for measuring electronic transactions are still limited. This chapter uses the few high-quality indicators available to capture the nature and volume of electronic commerce transactions and identify common trends across countries, sectors and firm size. Finally, it exploits existing surveys to discuss some of the benefits of and barriers to electronic commerce transactions as perceived by businesses and individuals.