The benefits of using internet based technologies can be simply describe by the following three concepts:

• expand the market to increase revenues
• reduce costs and
• strengthen customer relationships

Those who have entered the business will have the advantage of "first mover" which late entrants will find very difficult to overcome.

The conventional markets are limited in terms of time and space. These limitations of time and space have been removed by e-Business. 24-hours a day the market is available to the whole world. Internet access is available all the time wherever work is conducted. The access of internet is enjoyed worldwide by the business professionals, buyers, and decision makers, straddling all time zones.

With this market the supplier can work all the time, whenever he wants to 24 hours a day, 7 days a week and 365 days in a year. This market eliminates all the traditional limitations and boundaries for all the buyers and they can carry out their business when and where they want to.

The problem of channel conflict can be created which need to predicted and resolved. E-business implementations have been opposed by members of current distribution methods. Even inside their own organizations. E-Business is seen as a threat and this the most intelligent implementation can torpedo in this channel conflict.

Additionally, supplementary and complementary products are offered by the e-Business firms, promotions are added as buyers make selections. A sagacious site as Amazon.com suggests the companion or add-on books and Cds to those buyers who select to purchase. This causes a larger volume of ordering, producing a higher revenue at a low cost per transaction.

Furthermore, uneconomical markets have been made attractive and useful by the e-business. Markets seem to be unattractive because they are unable to deliver the acceptable margins to their supplier. It also offers low costs of gaining customers and fulfilling them which expands the density of customers who can deliver acceptable margins.

By turning the marginal segments into profitable ones the size of the available market has been increased. As the presence of internet creates the market pull. Many buyers and professionals tend to go to the internet in search of many steps in the purchase cycle. Due to the use of internet many suppliers and can be found, products can be tries out, and products can also be purchased.

The changing of the distribution of the products and the services to the customers is the major cost-reduction promise. Products that do not require any experience in the buying cycle can be bought by the customers on the internet and can be delivered directly without any intermediaries. The reduction in many layers of the distribution is markets major cost reduction benefit.

In different business environments, web based purchasing systems have a unique ability to minimize the waste in the process of purchasing. And therefore it improves the customers overall profitability and competitiveness.