| Abstract: | One of the greatest benefits of electronic commerce occurs when physical processes and products are replaced with digital ones. Digital distribution eliminates manufacturing and shipping costs as well as related intermediary margins. The software and book industries, among others, should be able to take advantage of these economies but for the most part have not. Impediments to digital distribution include the benefits of in-person browsing and demonstration, user readiness, device, infrastructure, intellectual property protection, the sensory experience of shopping, the relative probability of impulse buying, the value of display at retail locations, display and gift tangibility, and the need for alternative Internet payment methods. |
