The business of e-commerce.

• Author: Barbour, Tracy
• Position: Industry Overview

With an estimated 148 million people online, the World Wide Web represents a vast marketplace for business. From small entrepreneurial companies to huge corporate organizations, most businesses can benefit from having a presence on the Web.

Last year, 48 percent of U.S. households had computers, and 24 percent of them were connected to the Internet, according to Internet Alaska, the state's largest Internet service provider. In Alaska, the numbers were significantly higher. More than 70 percent of the state's residents owned home computers, with more than half of them online.

The explosion of online activity is expected to continue. By the year 2000, the number of Internet users is expected to reach 200 million. A marketplace without boundaries, Internet exploration can offer an abundance of opportunities for businesses. For example, many businesses utilize the Internet as a valuable research tool, said Internet Alaska marketing director Holly Lind.

"It's such a great resource of information," Lind said. "It's (used) to look at the competition, or to maybe look at an educational opportunity, as it relates to trade shows."

Another popular business use for the Internet is e-mail. This most frequently used feature allow users to send and receive messages virtually free to and from anywhere in the world. Businesses can use e-mail for simple text files, formatted documents, photos, programs, and sound and video files.

Going Global Without Leaving Home

For businesses whose needs stretch beyond basic e-mail and research functions, the Internet offers even greater benefits: It enables companies to promote their products and services around the corner or around the world with their own Web site.

Kenai Fjords' site, for example, facilitates the international marketing of its cruise and travel services, said Barbara Kagerer, who helped developed the site.

The site gives people a look at what Kenai Fjord has to offer, Kagerer said. "It's the culmination of all the brochures we have," she said. "It allows us to put a lot of information in people's hands quickly."

The Web site also serves other functions. Clients rely on the site for reservations and communication. "Sundays and Mondays are our two busiest days for e-mail and reservation requests," Kagerer said. "During the height of the e-mail season, it's easy to get 100 inquiries a day." Kagerer estimates that online reservations account for about 5 percent of Kenai Fjord's reservations.

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