The Internet is a new medium, and e-commerce is growing at about 8% a month. Business-to business transactions will represent the largest revenue: the eMarketer Newsletter projects that it will jump to $268 billion in 2002, up from $5.6 billion in 1997. For On line retail, eMarketer projects a jump to $26 billion by 2002, up from $1.8 billion in 1997.[1]
Areas expected to grow include financial services, travel, entertainment, and groceries. There are already obvious changes in some markets due to e-commerce. In the US, 20% of stock market transactions are already web-based. Some sectors will be quicker than others to shift to e-commerce. Users are reluctant, for example to buy insurance over the Internet, but they are buying and selling shares.
The main reason that companies will have to move to the Internet is to remain competitive. Web-based business costs are about a tenth of those within conventional business.[Bricknell,1998]
Internet News Magazine. Journal on line. Politicians exmamine future of e-commerce. [On line] Nov 30, 1998. http://www.internetnews.com/ec-news/1998/11/3003-ec.html [back to text]
[Bricknell, David] The rocky road to online sales. Computer Weekly, April 9, 1998 p.9 [back to text]
[Gantz, John] How to prosper in the new Internet economy. Computerworld, June 22, 1998 v32 p58 [back to text]