How Electronic Commerce Is Affecting American Industry

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ELECTRONIC-Commerce How It Is Affecting American Industry

The Internet over the past few years has seen a huge increase in online businesses and consumers. Electronic-commerce is expected to generate $36 billion in revenue during 1999, up 140% from last year alone.[1] With such a huge amount of money to be made on the Internet it is becoming very appealing for small businesses and start-up companies to try and make their niche in e-commerce. The Internet is drastically affecting the way companies and people conduct business now. E-commerce encourages growth in existing as well as new businesses because of lower overhead costs, the huge consumer base and the freedom of information flow. However the online revolution has created a large amount of competition for consumers between businesses despite the fact that the public does not yet have total confidence in the e-commerce market.

The Internet is a free and seemingly boundless medium that is distributed to over 200 million people worldwide.[2] This creates a large market for companies that are competing on the Internet, which acts as a level playing field. Small companies can compete with larger vendors by getting their product and prices seen by anyone interested online while not being limited by their locale or to just their local area consumers. Another reason why e-commerce is so attractive are the low star-up costs required to start a company. A basic site can be created with as little as a couple hundred dollars, a computer and a little imagination. A business can then be run from a home or network instead of a large expensive building where many employees and machines are needed. Because of this online businesses can sell their products for much less by passing their ...

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... Internet shopping is expected to increase by at least 50% into the millennium, which leaves much room for growth and new opportunities for new and adventurous companies.[4] E-commerce has opened up a new market in American industry that is forcing companies to become part of the online revolution or suffer the consequences in the long run. The freedom of the Internet combined with the huge amounts of information make for a more easily accessible environment that will revolutionize the way all business is conducted in the future.


1. 30 October 1999.

2. NUA - Internet Surveys. 03 November 1999.

3. C-Net. 1997. 30 October 1999.

4. C-Net. 31 October 30, 1999.
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