The potential for trade facilitated by the Internet 1996 - A review of demand, supply and Internet trade models

This paper investigates the potential for trade facilitated by the Internet. Potential demand for Internet trade is examined through an extensive literature review of three factors: the number of Internet users in 1996 and 2000. Internet user characteristics and online buying behaviour. This is followed by a review of the supply of information, goods and services on the Internet and the geographical distribution of users and suppliers of information. Analysis of these factors is then used to examine and develop Kierzkowski et al's (1996) model of products and services suitable for Internet trade. A better understanding of these factors is central to any strategy to develop potential applications on the World Wide Web. Many of the larger claims made far the number of users and purchasers on the Internet in 2000 are unlikely to be realised.