21 November 2008

Coverage
Internet sales rose by 30
United Kingdom

Theme per cent in 2007

Economy
2007 e-commerce Survey of Business
Internet sales by UK businesses rose to £163bn in 2007, figures
published today by the Office for National Statistics (ONS) show.

This is an increase of just over 30 per cent on the 2006 figure of

£125.2bn.

The results of the 2007 e-commerce survey, which was based on

businesses with 10 or more employees, show large increases in the
value of trade over the Internet and some levelling off in growth in
the use of some Information and Communication Technologies
(ICTs), such as computers, Internet access and websites.
Saturation is being reached by most business groups in these ICTs.

Key findings of the survey include:

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Office for National Statistics
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www.statistics.gov.uk
• Internet sales represented 7.7 per cent of the total value of all
sales by non-financial sector businesses in 2007.
• Internet sales accounted for 39.3 per cent of the value of
sales over all ICTs in 2007, up from 35.7 per cent in 2006.
• 30.4 per cent of the value of all purchases made by non-
financial sector businesses were made over the Internet or
other ICTs in 2007.
• 60.8 per cent of businesses used the Internet to interact with
public authorities, such as government departments and local
and regional authorities in 2007, an increase of nearly 18 per
cent since 2006.
• 70.3 per cent of businesses had a website
There are significant differences in the rate of adoption of newer
ICTs between the largest and smallest businesses. Supply chain
management systems were used by 33.4 per cent of businesses
with 1000 or more employees in 2007, compared with only 4.2 per
cent of businesses with 10 to 49 employees.
While the largest businesses have led the way with the adoption of
ICTs, the smallest businesses have closed the gap with the use of
more established ICTs such as Internet access and websites.
 News release: Internet sales rose by 30 per cent in 2007 Page 2

The Office for National Statistics also published Internet Connectivity

September 2008 today. Data showed that broadband connections
reached 94.1 per cent of all connections (residential and business)
up from 92.8 per cent in June 2008

The Impact of ICTs – International Study

ONS has led a group of 13 EU statistical offices in a programme to

investigate the impact of how businesses use ICTs.

The results show that:

• High speed Internet access for workers is an important link to

higher productivity
• Productivity effects vary by business type, especially in the
service industries
• ICT use improves productivity by enabling the adoption of
innovative ideas by firms, and speeding up the spread of new
products and services from successful businesses
• Increased use of e-commerce (e-buying and e-selling) is a key
element in improved productivity
• The UK is among those countries where ICT use is most
strongly associated with higher productivity

The full report and further information can be found under

'methodology' at http://ec.europa.eu/eurostat/ict

BACKGROUND NOTES
1. Businesses with employment of less than 10 were not included in the 2007
survey. These businesses were covered until the 2004 survey, which means
that some headline results of the 2005, 2006 and 2007 surveys are not
directly comparable with earlier years.
2. Banking and Financial businesses are excluded from estimates relating to the
proportions of businesses buying and selling over ICTs, and the values of
their sales and purchases.
3. The 2005 and 2006 estimates of ICT usage and electronic trading have been
revised as a result of updated estimates provided by businesses. 2002, 2003
and 2004 estimates have not been revised.
4. For further information on the 2007 e-commerce and ICT activity First
Release, please go to
http://www.statistics.gov.uk/STATBASE/Product.asp?vlnk=6645
5. Details of the policy governing the release of new data are available from the
ONS press office.
6. National Statistics are produced to high professional standards set out in the
National Statistics Code of Practice. They undergo regular quality assurance
reviews to ensure that they meet customer needs. They are produced free
from any political interference. © Crown copyright 2008.
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