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Country Based

E-Commerce Analysis

Assist. Prof. Dr. Özge Özgen

Dokuz Eylul University, Faculty of Business, Department of International Business and Trade

Global E-Business and Trade

US and E-Commerce (1)

US environment is favorable to e-commerce development.

The USA is the world’s largest single market, united by common

laws, language, currency, and business practices.

Its IT firms were leaders in creating the key technologies of the

Internet, and its businesses, universities, and other organizations were

leaders in adopting IT and the Internet.

Consumer technology adoption is relatively high, and consumers

were accustomed to remote purchasing from earlier catalog and

telesales experience.

The United States is the leader in readiness and diffusion.

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US and E-Commerce (2)

The government’s role was to build infrastructure and get out of

the way.

The US government was largely a cheerleader for e-commerce.

However, it played a broader role through support for defense

and university projects

USA has a strong rule of law and financial protections for

businesses and consumers

US and E-Commerce:

Manufacturing and Retailing Industry

Manufacturers led all industry sectors, with e-commerce

accounting for 42.0 percent ($1,862 billion) of total shipments.

4.2% of total retail spending took place online during 2010, up

from 3.9% in 2009

When excluding sales in categories not commonly bought online—

automobiles, fuel, grocery and foodservice sales—Internet Retailer

calculates that e-commerce accounted for 7.6% of total retail sales

during the year, up from 7.0% in 2009

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France and E-Commerce

France was an early adopter of e-commerce based on the

early technologies of EDI in the 1980s and a late adopter of

Internet-based ecommerce in the late 1990s.

The French environment was unprepared for Internet e-

commerce

France lags other developed countries in readiness and

diffusion

Germany and E-Commerce

German firms are driven to go online mainly to expand

markets

As a result of their confidence in the legal/regulatory

environment, German firms are likely to buy and sell online

German firms integrate the Internet with their internal IT

systems

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Mexico and E-Commerce

the finance sector leads in the adoption of e-commerce

Large firms lead in the adoption of Internet technologies,

including intranets, call centers, and electronic data

interchange, as well as in overall e-commerce use

Business-to-business e-commerce is much larger than business-

to consumer in terms of total transaction volume, accounting

for 93% of online sales.

Korea (97%), Iceland (92%) and the Netherlands (91%) have the highest share.

Between 2007 and 2010, the most rapid growth for Internet access was in Turkey, Mexico,

Greece and the Czech Republic

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On average, 94% of businesses with 10 or more persons employed in OECD countries are

connected to the Internet.

In Finland, Japan, Korea, the Netherlands and Switzerland over 98% of businesses use the

Internet.

Businesses in non-OECD economies are getting better connected too.

Over 85% of businesses (with 10 or more employees) had an Internet connection in Malta, Brazil, Latvia, Hong Kong (China) and Serbia.

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On average, 69% of businesses in OECD countries

have their own Web site.

In 2010, on average, 35% of all businesses with 10 or more persons employed

used the Internet for purchasing and 18% for selling goods or services.

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In most OECD countries,

e-commerce still

represents

a small share of total

sales

In Korea, e-commerce grew seven-fold

between 2001 and 2010.

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The three countries reporting

the highest proportions of

business having problems with

viruses were Japan, Mexico and

Germany with over 20%.

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Around 30% of people in the OECD buy goods or services over the Internet.

Over half do so in the United Kingdom, Denmark, Norway, Korea, the Netherlands and

Australia

On average, close to 40% of people in OECD countries use banking services on the

Internet.

E-banking is very popular in the Nordic countries and in the Netherlands, where over

75% of individuals use the Internet for banking.

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Internet Usage Related to Social Networking Activities

Social networking has

rapidly gained importance

as nearly 50% of OECD

Internet users are active

social network users.

In 2010, at least 60% of

Internet users in Poland,

Portugal, Turkey and the

United States engage in

social networking on the

web.

Almost half of Internet users use the Internet

for formalised education activities.

In Finland, Portugal, Iceland and Luxembourg the share is over 70%.

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In 2010, 66% of OECD businesses used the Internet for

returning completed forms to public authorities.

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In 2010, the Slovak Republic, Hungary, Italy and Estonia

had more than 40% of Internet users encountering viruses