The introduction of e-commerce has impacted on the traditional means of online exchanges. It is creating a new market place and opportunities for the reorganisation of economic processes, in a more efficient way. The open structure of the Internet and the low cost of using it, permits the interconnection of new and existing information and communication technologies. It offers businesses and consumers an innovative and powerful information system and another form of communication. This changes the way they search and consume products, with these products increasingly customized, distributed and exchanged differently (Anonymous, 2000:193).
In 1991, the Internet had less than three million users and the concept of e-commerce was non existent. By 1999 and estimated two hudred and fifty million users accessed the Internet and and approximately one quarter made purchases online from e-commerce sites (Anonymous, 2000:193).
The advent of e-commerce has seen a dramatic impact on the traditional ways of doing business. It has brought producers and consumers closer together and eradicated many of the costs previously encountered (Wyckoff, 1997:5).
It is evident that the supply industry will benefit from e-commerce which includes those producing computers, networking equipment and the software necessary (Wyckoff, 1997:6).
It is also evident that a negative impact will be targted at direct substitutes, such as retail travel agencies, retailers of software and "bricks and mortar" music stores. However, these impacts will be small comapred to the developments imaginable (Wyckoff, 1997:5).
Anonymous (2000) "E-Commerce: Impacts and policy challenges," Organisation for Economic Cooperation and Development Vol.67, p.193.
Wyckoff, A. 1997. "Imagining the impact of electronic commerce". Organisation for Economic and Cooperation and Development. Iss.208.
Anna Caldwell 19:57, 26 Oct 2005 (EST)
