More Canadians used the Internet to purchase goods and services in 2007, placing almost $12.8 billion worth of orders, up 61 per cent from 2005.

This increase was driven by a larger volume of orders, which rose from 49.4 million in 2005 to 69.9 million in 2007. The proportion of orders placed with Canadian vendors declined slightly from 57 per cent of the total in 2005 to 52 per cent in 2007.

More than 8.4 million Canadians aged 16 and over made an online purchase in 2007, up from nearly 6.9 million in 2005. They accounted for 32 per cent of Canadians in this age group, compared with 28 per cent in 2005.

Not all online consumers participated equally. The top 25 per cent of "online consumers," who spent an average of $5,000 during 2007, were responsible for 46 per cent of orders and 78 per cent of the total dollar value.

Internet shoppers were also more likely to pay directly online. About 82 per cent paid directly online for some or all of their purchases, up from 75 per cent in 2005.

Even so, 77 per cent of these online consumers expressed concern about online credit card use.

Albertans heaviest online shoppers

Among those Canadians aged 16 and over who used the Internet in 2007, 44 per cent made an online order. This proportion is lowered slightly by including those aged 16 and 17 in the 2007 survey. Regionally, Internet users from Alberta were the heaviest online shoppers in 2007, with one-half placing an online order.

While the vast majority (97 per cent) of teenagers aged 16 and 17 used the Internet, only 25 per cent used it to make an online order.

Demographically, Internet users aged 25 to 34 were the heaviest online consumers, with more than one-half (51 per cent) ordering online.

More paying directly online

The most common types of online orders were travel services, books and magazines, other entertainment products such as concert tickets, and clothing, jewellery and accessories.

About 82 per cent of online consumers paid directly over the Internet, using a credit or debit card, for some or all of their purchases in 2007, an increase from 75 per cent in 2005.

Internet supports retail

For many Canadians, the Internet has become a supplement to traditional retail shopping more than a substitute.

In 2007, 43 per cent of Canadians logged on to do research on products, or to "window shop." Of these window shoppers, a majority (64 per cent) reported that they had subsequently made a purchase directly from a store.

The most popular items for browsing were consumer electronics, such as cameras and VCRs; housewares, such as large appliances and furniture; and clothing, jewellery and accessories.

Security concerns persist

In 2007, one-half (50 per cent) of all Canadians, whether or nor they went online, reported that they were very concerned about online credit card use.

This level of concern dropped to 34 per cent among those who had actually made an order (with or without online payment), and it was even lower (30 per cent) among the minority who were the "top online consumers."

These levels were higher in 2005 for all three groups. Survey results showed that Canadians were less likely to be very concerned about security if they had used the Internet longer and for more activities.

Canadians were more experienced users in 2007, with 54% reporting five or more years of Internet use, up from 45% in 2005. Among the "top online consumers," 91% had used the Internet for five or more years in 2007.