The potential benefits of e-commerce are clear: lower costs, greater reach, faster response times. But e-commerce doesn't mean simply pushing products at people faster. Because the Internet is such a good communications channel—it's fast, reasonably reliable, low in cost, and widely accessible—it can also deepen relationships with customers and partners.

With digital transactions and communication, companies can provide better service and support. This will become increasingly important as more and more consumers use the Web to gain access to information before purchasing and come to expect greater customization of products and faster service online.

The Internet can also promote closer collaboration and relationships among businesses. Suppliers and buyers can use the Internet to work more closely on joint projects such as tracking the success of a product promotion in real-time. Resellers can visit a supplier's Web site to check up-to-the-minute product availability and place orders.