Online sales rise by 81 per cent

Internet used more often, by more firms

The value of internet sales in the UK rose by 81 per cent to £71.1bn in 2004, up from £39.3bn a year earlier, according to the Office of National Statistics.

Some seven per cent of businesses used the internet as a sales channel last year, but 35.3 per cent of firms went online to buy goods and services, revealed the survey, which questioned 12,000 firms about their IT usage.

As a result, internet-based purchases by companies rose by 64.6 per cent to £62.4bn in 2004.

One third of companies now have a web site, up from 30.7 per cent in 2003, while 98.1 per cent of those with more than 1,000 employees have an online presence.

Among businesses that have an internet connection, use of broadband increased from 25.7 per cent in 2003 to 42.3 per cent in 2004.

And the value of online sales to households nearly doubled, rising from £10.8bn in 2003 to £18.1bn in 2004.

A recent report from the Organisation for Economic Cooperation and Development revealed that the UK has risen to 13th place in the world in terms of broadband adoption (Computing, 27 October).

The UK has 13.5 broadband connections per 100 citizens, up from 10 at the end of 2004.