e-Commerce 101: What it is, where it's going (cont.)
by L. Rush

The Future of e-Commerce
What does the future hold for e-commerce? Many would say it is difficult to predict. The forces that determine the Web's winners and losers are just taking shape and technological advances could add even more uncertainty. On the downside, some experts predict that it will be increasingly difficult for smaller companies to establish their presence. Public companies and traditional brand name retailers have deep pockets and a name recognition that will make it difficult for smaller sites and mom-and-pop shops to attract customers, thereby forcing them to compete with the big boys. On the Net, it's one big neighborhood.

On the upside, nearly all experts believe that overall e-commerce will increase exponentially in coming years. Business-to-business transactions will represent the largest revenue: the eMarketer newsletter and Web site (www.emarketer.com) projects that it will jump to $268 billion in 2002, up from $5.6 billion in 1997. And online retail will also enjoy drastic growth. eMarketer projects a jump to $26 billion by 2002, up from $1.8 billion in 1997. Areas expected to grow include financial services, travel, entertainment, and groceries.

And for those considering opening a virtual storefront, forthcoming technology and standards agreements will make it easier to create a site, to protect it against payment fraud, and to share information with suppliers and business partners. (For an in-depth look at choosing the right electronic storefront software and reviews of e-commerce packages, check out E-Commerce Guide's Reviews section.) The real issue will be the same one that nearly every site struggles with -- getting customers to drop by.

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