E-BUSINNESS

E-COMMERCE : THE REVOLUTION IS JUST BEGINNING

PREFACE

The Amazon story is emblematic of the e-commerce environment of the past two years : an early period of business vision, inspiration, and experimentation, followed by immense difficulties proving new technologies and new business models. Many e-commerce companies failed during this process, resulting in hundreds of bankruptcy fillings.

In 1994, e-commerce as we know it did not exist. In 2003, businesses are expected to spend over $1 trillion purchasing goods and services from other business on the web (U.S Census Bureau, 2003). From a standing start in 1995, this type of commerce, called electronic commerce or e-commerce, experienced growth rates of well over 100% a year, although the rate has slowed and is now growing at over 30% year. These development have created the first widespread digital electronic marketplaces.

It is important to realize that the rapid growth and change that has occurred in the first eight years of e-commerce represents just the beginning-what we could be called the first thirty seconds of the e-commerce revolution. The twenty first century will barely perceive at this time. It appears likely that e-commerce will eventually impact nearly all commerce, or that most commerce will be e-commerce by the year 2050.