erated from the one millionth customer does not go to support a larger facility which, in traditional companies, would be necessary to support such a large operation ("Sales on the Internet," 1999, p. 11).
In a recent survey, approximately 40 percent of 802 CEOs calculated that e-business would account for more than 10 percent of their revenues over the next five years. Of that 40 percent, fully half expect that their e-business will contribute more than 20 percent of their total revenue. This increase is substantial given that more than 75 percent of the CEOs report that only five percent (or less) of their current business is coming from the Internet.
Trade distribution and logistics industries deal with two flows: a flow of goods and a 'counter-flow' of information about the goods and about their movement. The efficiency of these industries is being dramatically improved by Internet-based methods of moving information allowing them to reduce transport, insurance and border administrative costs. These supply-chain efficiencies have made global direct retailing of consumer products such as clothing and health products possible.
The Internet is likely to become a major marketing tool for at least some commodities and enable producers, buyers and marketing authorities to develop closer relationships with final overseas customers and to improve information flows in price sensitive markets.
Small and rural businesses may be among the biggest beneficiaries of the Internet. By reducing transaction costs, the Internet provides unprecedented opportunities for these organizations to trade across borders. Lower transaction costs also provide opportunities for many rural and regional communities to revitalize their economic bases. Skillful use of the Internet can create opportunities by giving farmers, small business people and communities the capacity to present a regional image to the world, create focal points for inquiries ...