Introduction The Internet is revolutionizing the way business is conducted and its use is becoming increasingly critical to the success of business firms. The Internet is becoming such a pervasive tool that every company will be using it in some way or another in a few years. It is a powerful tool that a business can use to obtain a competitive advantage. It offers many opportunities for businesses to grow in sales and reduce costs. According to the American City Business Journal, small businesses that use the Internet have grown 46 percent faster than those that do not (Howard, 2002). Some of the major changes brought about by the Internet can be seen in the way we purchase products and services, obtain information, and conduct our banking. Customers can quickly find product and price information and obtain advice from a wide variety of sellers. Online visitors can check product availability, place an order, check the status of an order, and pay electronically. The use of the Internet empowers customers because they can go on the Web and quickly find out where to get the lowest prices for a particular product or service. Consumers benefit from the Internet because it reduces search costs for products and product-related information. E-tailing increases competition by pitting local against national and international competitors (Quelch and Klein, 1996).