Electronic commerce in a channel distribution structure

After the initial hype and unrealistic expectation of electronic commerce (EC) gradually settles, more interests are devoted to understand "business models" of EC -- how to incorporate EC into existing distribution structure and take advantage of it. We have witnessed the emergence of market structure more complicated than previously predicted. There is a need for more complete and sophisticated business models of EC, and insights into the role of EC in the context of a firm's distribution structure. This paper proposes five business models of EC adoption. It includes both EC-only models and models where EC is an added channel to an existing distribution structure. It argues that EC can play many roles in the structure, including one that is to replace or substitute existing channels, or one that is to strengthen or complement them.