Page 37 - Electronic Commerce

Chapter 1

B2C sales because B2B incorporates EDI, a technology that accounted for more than $400
12
billion per year in transactions in 1995, when Internet-based electronic commerce was
just beginning. This book defines B2B sales as including companies’ transactions with
other businesses, with their employees, and with governmental agencies (for example,
when they pay their taxes) because these business processes are all candidates for the
application of Internet technologies.
The dollar amount of these B2B transactions is substantial. Intel is one example of a
company that sells its products to other businesses rather than to consumers. Intel
accepts more than 98 percent of its orders (more than $50 billion per year) through the
Internet. Intel also purchases billions of dollars’ worth of supplies and raw materials on
the Web each year. The total volume of all worldwide business activities on the Web is
expected to exceed $14.3 trillion by 2015. Figure 1-3 summarizes the growth of actual
and estimated global online sales for the B2C and B2B categories.

B2C Sales: B2B Sales (including EDI):
Actual and Estimated Actual and Estimated
Year $ Billions $ Billions
2015 1,170 14,300
2014 1,080 13,100
2013 963 11,900
2012 821 10,600
2011 681 9,500
2010 573 8,600
2009 487 7,500
2008 453 6,500
2007 426 5,600
2006 361 4,800
2005 255 4,100
2004 179 2,800
2003 103 1,600
2002 91 900
2001 73 730
2000 52 600
1999 26 550
1998 11 520
1997 5 490
1996 Less than 1 460
Adapted from reports by ClickZ Network (http://www.clickz.com/stats/stats_toolbox/); eMarketer
(http://www.emarketer.com/); Forrester Research (http://www.forrester.com); Gartner (http://www.gartner.com),
Internet Retailer (http://www.internetretailer.com), the Statistical Abstract of the United States, 2008, 2011, 2012,
Washington: U.S. Census Bureau.

FIGURE 1-3 Actual and estimated global online sales in B2C and B2B categories

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