The impact of online platforms on business e-commerce sales

E-commerce sales by businesses have seen a significant increase in recent years, with the latest statistics showing a surge in value across 43 developed and developing economies. According to data released by Eurostat, in 2021, businesses generated close to US$ 25 trillion in e-commerce sales, accounting for around three quarters of worldwide GDP. This marked a 15 per cent increase from pre-pandemic levels in 2019, and sales are projected to have risen by a further 10 per cent in 2022, reaching almost $27 trillion.

The share of business turnover generated through e-commerce varies widely among the economies analyzed, ranging from less than one per cent to as much as 30 per cent. Interestingly, the majority of e-commerce sales by businesses are made to other businesses or organizations, with business-to-consumer sales typically accounting for less than a quarter of total sales. Despite developing economies contributing around 40 per cent of global GDP, their share in business e-commerce sales remains lower.

In terms of international trade, the bulk of e-commerce sales among these economies occur within the same economic territory. However, digitally ordered exports, or international e-commerce sales, were estimated to be worth around $2.5 trillion in 2021, representing approximately 13 per cent of total exports of goods and services. It is important to note that there is limited data on digitally ordered trade, making this estimate relatively uncertain.

Online retail sales, a subset of business-to-consumer e-commerce, have also experienced rapid growth, particularly during the pandemic. While this growth moderated in 2023 as pandemic restrictions eased, countries like China, the United Kingdom, and the Republic of Korea have notably higher online retail sales, accounting for around 25 to 30 per cent of all retail sales. The United States follows closely behind at around 15 per cent, with most other economies falling within a range of 5-10 per cent.

Digital intermediary platforms (DIPs) play a crucial role in the e-commerce landscape, facilitating transactions and connecting buyers and sellers. The value of transactions through 37 major DIPs increased by over 55 per cent during the pandemic, underscoring their importance in driving e-commerce sales.

To improve the availability and comparability of statistics on e-commerce, the Task Group on Measuring E-commerce Value (TG-eCOM) has been established by UN Trade and Development. This group brings together various countries and international organizations to develop internationally agreed guidelines and recommendations, serving as a basis for capacity building and technical assistance in enhancing e-commerce statistics.

Overall, the latest statistics on e-commerce sales by businesses highlight the significant growth and impact of online transactions on the global economy. As e-commerce continues to evolve and expand, it is essential to have accurate and reliable data to inform policy decisions and support the growth of digital commerce worldwide.