Business to Business: Electronic Business allows businesses to be in direct contact with each other, providing access to certain systems. For example, a car company is dependent on a steel company for materials. Electronic Commerce allows the Car Company to set up a secure link to the steel company. This simplifies the inventory process, for the steel company periodically checks the car company's computerized inventory system and automatically delivers the requires parts. This eliminates storage costs.
Business to Consumer: The Internet puts the business in direct contact with their consumer, even if they are halfway around the world. Instead of selling their product to a store in that country to gain market access, the Internet provides direct market access.
Increased market intelligence of consumer needs and wants: The Internet allows businesses to track consumers' buying habits more accurately than anonymous cash transactions.
Opportunity to cater to a niche market: This applies especially for small business, which could reach more potential customers online than with an actual store.
Increased market expansion. The Internet provides a global market to businesses, erasing the restrictions of physical locations.

Benefits to the Consumer

Choice: The Internet provides consumers with access to a vast array of products and services from businesses around the world as the global market emerges.
Price: All the decreases in price due to a supplier decrease in cost will serve to benefit the consumer.
Customization: The Internet provides direct contact with the producer allowing customers to request personalization of product.
Privacy: The Internet provides a certain type of anonymity for consumers that dislike the actual shopping experience. You are, however, known by your credit card.
Convenience: As the popularity of online grocers and supermarkets increase, consumers will benefit with such services, which provide delivery of such necessities.

Implications to Businesses

The most significant disadvantage of Internet commerce is that it lacks the

establishment of a customer repertoire. This translates into a lack of consumer loyalty;

and forces business to renew tactics. Dependency on web server - if it malfunctions, a business that is totally web-based could loose potential sales over the time period.

Technological adaptation costs due to hardware and software upgrades require

companies not only to spend money on purchasing the upgrades but also on training

employees in its use.

Implications to Consumers

Access: Consumer access to a web-based store is limited by hardware, software, and Internet connections.
Inspection: The consumer is unable to physically inspect product, since the Internet provides a picture and verbal description.
Privacy: The Internet decreases the privacy of shopping habits since electronic trails make it possible for a store to monitor you, whereas in real life, you would still maintain anonymity with cash transactions.
Security: Web-stores must have secure channels over which to engage in transactions. The majority of consumers today are questioning the security of Internet transactions.
Implications to Economy:

The digitalization of our economy will result in unemployment as many traditional

jobs are eliminated. The web-based organization eliminates the need for store managers, cashiers etc. As the network from the producer to the consumer grows smaller, product delivery between businesses decreases and so this sector of the delivery industry will decline, but the sector dealing with private at-home delivery will flourish. As the popularity of the Internet economy increases, more and more transactions will be done online, eliminating the need for checks and paper money. It will propel the revolution of money, which will no longer be a tangible object, but rather an intangible idea - virtual money.