<P> Economists have theorized that e-commerce ought to lead to intensified price competition, as it increases consumers' ability to gather information about products and prices . Research by four economists at the University of Chicago has found that the growth of online shopping has also affected industry structure in two areas that have seen significant growth in e-commerce, bookshops and travel agencies . Generally, larger firms are able to use economies of scale and offer lower prices . The lone exception to this pattern has been the very smallest category of bookseller, shops with between one and four employees, which appear to have withstood the trend . Depending on the category, e-commerce may shift the switching costs--procedural, relational, and financial--experienced by customers . </P> <P> Individual or business involved in e-commerce whether buyers or sellers rely on Internet - based technology in order to accomplish their transactions . E-commerce is recognized for its ability to allow business to communicate and to form transaction anytime and anyplace . Whether an individual is in the US or overseas, business can be conducted through the internet . The power of e-commerce allows geophysical barriers to disappear, making all consumers and businesses on earth potential customers and suppliers . Thus, switching barriers and switching costs may shift . eBay is a good example of an e-commerce business individuals and businesses are able to post their items and sell them around the globe . </P> <P> In e-commerce activities, supply chain and logistics are two most crucial factors need to be considered . Typically, cross-border logistics need about few weeks time round . Based on this low efficiency of the supply chain service, customer satisfaction will be greatly reduced . Some researcher stated that combining e-commerce competence and IT setup could well enhance company's overall business worth . Other researcher stated that e-commerce need to consider the establishment of warehouse centers in foreign countries, to create high efficiency of the logistics system, not only improve customers' satisfaction, but also can improve customers' loyalty. . </P> <P> For a long time, companies had been troubled by the gap between the benefits which supply chain technology has and the solutions to deliver those benefits . However, the emergence of e-commerce has provided a more practical and effective way of delivering the benefits of the new supply chain technologies . </P>

E commerce need of today's business world reference