E-commerce vs. Traditional Business

1. HOW TECHNOLOGY
IS CHANGING
INTERNATIONAL TRADE

NEW EVIDENCE FROM EBAY MARKETPLACES

E-COMMERCE TRADITIONAL

BUSINESS

2. EXPORT PROPENSITY

99.5% 10.4%

Virtually all of the By contrast, a small
Canadian firms with minority of traditional
annual sales of at small businesses in
least $10,000 on Canada export.

eBay were

exporters.

3. MARKET REACH

Canadian exporters on eBay
reached an average of 19

different markets.
9 9 9 9 9 9 9 Traditional Canadian small

business exporters reached
0000009 an average of only 2.5
countries.

4. MARKET ENTRANTS

Traditional international
trade is generally
dominated by a small
number of very large,
well-established firms.
Largest 3.3%
of exporters
captured...

In e-commerce, there are
more newcomers and

they capture more of market share

market share.

| pp SOURCE: hitp://irpp.org/research-studies/aots6-ahmed-melin