Exhibit 10.23

THE  SECURITIES  EVIDENCED BY THIS WARRANT  HAVE NOT BEEN  REGISTERED  UNDER THE
SECURITIES ACT OF 1933, AS AMENDED OR APPLICABLE  STATE  SECURITIES LAWS, AND NO
INTEREST  MAY BE SOLD,  DISTRIBUTED,  ASSIGNED,  OFFERED,  PLEDGED OR  OTHERWISE
TRANSFERRED UNLESS (A) THERE IS AN EFFECTIVE  REGISTRATION  STATEMENT UNDER SUCH
ACT AND APPLICABLE STATE SECURITIES LAWS COVERING ANY SUCH TRANSACTION INVOLVING
SAID  SECURITIES,  (B) THE COMPANY  RECEIVES AN OPINION OF LEGAL COUNSEL FOR THE
HOLDER  OF  THE  SECURITIES  SATISFACTORY  TO  THE  COMPANY  STATING  THAT  SUCH
TRANSACTION IS EXEMPT FROM REGISTRATION,  OR (C) THE COMPANY OTHERWISE SATISFIES
ITSELF THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION.

ISSUED: October 20, 2000                                     WARRANT TO PURCHASE
Void After October 19, 2005                                  COMMON STOCK

                             EBIZ ENTERPRISES, INC.

                                     WARRANT

     THIS IS TO CERTIFY that, for good and valuable consideration and subject to
these terms and conditions,  THE CANOPY GROUP,  INC. or such person to whom this
Warrant is transferred  (the "HOLDER"),  is entitled to exercise this Warrant to
purchase 850,000 fully paid and nonassessable shares of EBIZ ENTERPRISES,  INC.,
a Nevada  corporation (the  "COMPANY"),  Common Stock (the "WARRANT STOCK") at a
price per share of $1.00 (the "EXERCISE Price") (such number of shares,  type of
security and the Exercise Price being subject to adjustment as provided below).

     1. METHOD OF EXERCISE

     This Warrant may be exercised  by the Holder,  at any time after  issuance,
but not later than  October 19,  2005 (the  "EXERCISE  PERIOD"),  in whole or in
part, by delivering to the Company at Ebiz  Enterprises,  Inc., 15695 North 83rd
Way, Scottsdale, Arizona 85260 (or such other office or agency of the Company as
it may designate by notice in writing to the Holder at the address of the Holder
appearing  on the books of the  Company)  (a) this  Warrant  certificate,  (b) a
certified or cashier's check payable to the Company, or canceled indebtedness of
the Company to the Holder, in the amount of the Exercise Price multiplied by the
number of shares  for which  this  Warrant  is being  exercised  (the  "PURCHASE
PRICE"), and (c) the Notice of Exercise attached as EXHIBIT A duly completed and
executed by the Holder.

     2. DELIVERY OF STOCK CERTIFICATES; NO FRACTIONAL SHARES

     2.1 DELIVERY OF STOCK CERTIFICATES. Within 10 days after the payment of the
Purchase Price following the exercise of this Warrant (in whole or in part), the
Company at its expense  shall issue in the name of and deliver to the Holder (a)
a certificate  or  certificates  for the number of fully paid and  nonassessable
Warrant Shares to which the Holder shall be entitled upon such exercise, and (b)
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a new  Warrant in  substantially  the same form to purchase up to that number of
Warrant Shares,  if any, as to which this Warrant has not been exercised if this
Warrant has not  expired.  The Holder  shall for all  purposes be deemed to have
become the holder of record of such Warrant  Shares on the date this Warrant was
exercised  (the date the  Holder has fully  complied  with the  requirements  of
Section  1),  irrespective  of  the  date  of  delivery  of the  certificate  or
certificates  representing  the Warrant Shares;  PROVIDED that, if the date such
exercise  is made is a date when the stock  transfer  books of the  Company  are
closed,  such person shall be deemed to have become the holder of record of such
Warrant Shares at the close of business on the next succeeding date on which the
stock transfer books are open.

     2.2 NO FRACTIONAL  SHARES.  No  fractional  shares shall be issued upon the
exercise of this Warrant.  In lieu of fractional  shares,  the Company shall pay
the Holder a sum in cash equal to the fair market value of the fractional shares
(as determined by the Company's Board of Directors) on the date of exercise.

     3. COVENANTS AS TO WARRANT SHARES

     The Company  covenants  that at all times during the Exercise  Period there
shall be reserved for issuance and delivery  upon  exercise of this Warrant such
number of Warrant  Shares as is  necessary  for exercise in full of this Warrant
and, from time to time,  it will take all steps  necessary to amend the Articles
of Incorporation to provide sufficient reserves of Warrant Shares.

     4. ADJUSTMENTS; TERMINATION OF WARRANT UPON CERTAIN EVENTS

     4.1 EFFECT OF REORGANIZATION.

          (a) REORGANIZATION - NO CHANGE IN CONTROL

     Upon a merger,  consolidation,  acquisition of all or substantially  all of
the  property  or stock,  liquidation  or other  reorganization  of the  Company
(collectively,  a  "REORGANIZATION")  during the Exercise Period, as a result of
which the  shareholders of the Company receive cash,  stock or other property in
exchange for their Warrant Shares and the holders of the Company's voting equity
securities  immediately  prior to such  Reorganization  together  own a majority
interest of the voting equity securities of the successor  corporation following
such  Reorganization,  lawful  provision  shall be made so that the Holder shall
thereafter be entitled to receive,  upon exercise of this Warrant, the number of
shares  of  securities  of  the  successor   corporation   resulting  from  such
Reorganization  (and cash and other property),  to which a holder of the Warrant
Shares  issuable  upon exercise of this Warrant would have been entitled in such
Reorganization  if this  Warrant had been  exercised  immediately  prior to such
Reorganization.  In any such case, appropriate adjustment (as determined in good
faith by the Company's  Board of Directors)  shall be made in the application of
the  provisions  of this  Warrant with respect to the rights and interest of the
Holder after the  Reorganization  to the end that the provisions of this Warrant
(including  adjustments  of the  Exercise  Price  and  the  number  and  type of
securities  purchasable  pursuant  to  the  terms  of  this  Warrant)  shall  be
applicable  after that event,  as near as reasonably  may be, in relation to any
shares deliverable after that event upon the exercise of this Warrant.

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          (b) REORGANIZATION - CHANGE IN CONTROL; TERMINATION OF WARRANT

     Upon  Reorganization  during the Exercise Period,  as a result of which the
shareholders  of the Company  receive cash,  stock or other property in exchange
for  their  Warrant  Shares  and the  holders  of the  Company's  voting  equity
securities  immediately  prior to such  Reorganization  together own less than a
majority interest of the voting equity  securities of the successor  corporation
following such Reorganization, the Holder shall be given notice of such proposed
action as  provided  in Section  7. The  Holder  may  attend the  meeting of the
Company's shareholders at which such action is considered and voted upon. If the
proposed action is approved  according to applicable law by the  shareholders of
all corporations or other entities that are parties to the proposed action,  the
Holder shall be so notified in writing by the Company by registered or certified
mail at least 10 days before its  effectiveness.  Notwithstanding  the period of
exercisability  stated on the face of this  Warrant,  this Warrant  shall become
forever  null and void to the  extent  not  exercised  on or before  5:00  p.m.,
Pacific time, on the seventh day following the delivery of such notice; provided
that if the Reorganization  does not close, this Warrant shall not terminate and
the Exercise Period shall continue as stated in this Warrant.

     4.2 ADJUSTMENTS FOR STOCK SPLITS, DIVIDENDS.

     If the Company shall subdivide the number of outstanding shares of the same
class as the Warrant Shares into a greater  number of shares,  then the Exercise
Price in effect before such  dividend or  subdivision  shall be  proportionately
reduced and the number of Warrant  Shares at that time issuable  pursuant to the
exercise of this Warrant shall be proportionately increased; and, conversely, if
the Company shall contract the number of outstanding shares of the same class as
the Warrant  Shares by  combining  such shares into a smaller  number of shares,
then  the  Exercise   Price  in  effect   before  such   combination   shall  be
proportionately  increased and the number  Warrant  Shares at that time issuable
pursuant to the exercise or conversion of this Warrant shall be  proportionately
decreased.  Each adjustment in the number of Warrant Shares issuable shall be to
the nearest whole share.

     4.3 CERTIFICATE AS TO ADJUSTMENTS.

     In the case of any  adjustment in the Exercise  Price or number and type of
securities  issuable upon  exercise of this  Warrant,  the Company will promptly
give written  notice to the Holder in the form of a  certificate,  certified and
confirmed  by an  officer  of the  Company,  setting  forth  the  adjustment  in
reasonable detail.

     5. SECURITIES LAWS RESTRICTIONS; LEGEND ON WARRANT SHARES

     5.1 SECURITIES LAWS RESTRICTIONS.  This Warrant and the securities issuable
upon  exercise have not been  registered  under the  Securities  Act of 1933, as
amended,  or  applicable  state  securities  laws,  and no interest may be sold,
distributed,  assigned,  offered,  pledged or otherwise  transferred  unless (a)
there is an effective registration statement under such Act and applicable state
securities laws covering any such transaction involving said securities, (b) the
Company  receives an opinion of legal  counsel for the holder of the  securities
satisfactory  to the  Company  stating  that such  transaction  is  exempt  from
registration,   or  (c)  the  Company  otherwise   satisfies  itself  that  such
transaction is exempt from registration.

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     5.2 LEGEND.  A legend setting forth or referring to the above  restrictions
shall  be  placed  on  this  Warrant,   any   replacement  and  any  certificate
representing  the Warrant  Shares,  and a stop transfer order shall be placed on
the books of the Company and with any transfer  agent until such  securities may
be legally sold or otherwise transferred.

     6. EXCHANGE OF WARRANT; LOST OR DAMAGED WARRANT CERTIFICATE

     This Warrant is exchangeable upon its surrender by the Holder at the office
of the  Company.  Upon  receipt by the Company of  satisfactory  evidence of the
loss,  theft,  destruction  or damage of this Warrant and either (in the case of
loss,  theft  or  destruction)  reasonable  indemnification  or (in the  case of
damage) the surrender of this Warrant for cancellation, the Company will execute
and deliver to the Holder,  without charge, but with adequate  indemnity,  a new
Warrant of like denomination.

     7. NOTICES OF RECORD DATE, ETC.

     In the event of:

          (a) any taking by the  Company  of a record of the  holders of Warrant
Shares for the purpose of  determining  the holders who are  entitled to receive
any dividend or other  distribution,  or any right to subscribe for, purchase or
otherwise  acquire any shares of stock of any class or any other  securities  or
property, or to receive any other right;

          (b)  any  reorganization  of  the  Company,  any  reclassification  or
recapitalization of the capital structure of the Company, or any transfer of all
or  substantially  all the assets of the Company to, or  consolidation or merger
of, the Company with or into any person;

          (c)  any  voluntary  or   involuntary   dissolution,   liquidation  or
winding-up of the Company;

          (d) any  proposed  issue or grant by the  Company  to the  holders  of
Warrant Shares of any shares of any class or any other securities,  or any right
or warrant to  subscribe  for,  purchase or  otherwise  acquire any units of any
class or any other securities;

          (e) the initial public offering of the Company's shares; or

          (f) any other event as to which the Company is required to give notice
to any holders of Warrant Shares,

then  and in each  such  event  the  Company  will  mail to the  Holder a notice
specifying  (i) the date on which any such record is to be taken,  (ii) the date
on which any such reorganization, reclassification,  recapitalization, transfer,
consolidation,  merger, dissolution, liquidation or winding-up is to take place,
and the  time,  if any is to be  fixed,  as to which  the  holders  of record of
Warrant Shares or securities into which the Warrant Shares are convertible shall
be  entitled  to  exchange   their  shares  for  securities  or  other  property
deliverable   on  such   reorganization,   reclassification,   recapitalization,
transfer, consolidation,  merger, dissolution,  liquidation or winding-up, (iii)

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the  amount  and  character  of any  stock or other  securities,  or  rights  or
warrants,  proposed to be issued or granted,  the date of such proposed issue or
grant and the persons or class of persons to whom such  proposed  issue or grant
is to be offered or made, and (iv) in reasonable  detail,  the facts,  including
the  proposed  date,  concerning  any other such  event.  Such  notice  shall be
delivered  to the  Holder at least 20 days  prior to the date  specified  in the
notice.

     8. INVESTMENT INTENT

     By accepting this Warrant,  the Holder represents that it is acquiring this
Warrant for investment  and not with a view to, or for sale in connection  with,
any distribution thereof.

     9. MISCELLANEOUS

     9.1 HOLDER AS OWNER.

     The Company may deem and treat the holder of record of this  Warrant as the
absolute owner for all purposes regardless of any notice to the contrary.

     9.2 NO SHAREHOLDER RIGHTS.

     This Warrant shall not entitle the Holder to any voting rights or any other
rights as a shareholder  of the Company or to any other rights except the rights
stated  herein;  and no dividend or interest shall be payable or shall accrue in
respect of this Warrant or the Warrant Shares, until this Warrant is exercised.

     9.3 NOTICES.

     Unless otherwise provided,  any notice under this Warrant shall be given in
writing and shall be deemed  effectively given (a) upon personal delivery to the
party to be notified, (b) upon confirmation of receipt by fax by the party to be
notified, (c) one business day after deposit with a reputable overnight courier,
prepaid for  overnight  delivery and addressed as set forth in (d), or (d) three
days  after  deposit  with the  United  States  Post  Office,  postage  prepaid,
registered or certified with return receipt requested and addressed to the party
to be notified at the address  indicated below, or at such other address as such
party may designate by 10 days' advance  written notice to the other party given
in the foregoing manner.

     If to the Holder:   To the address last furnished
                         in writing to the Company by
                         the Holder

                                        5
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     If to the Company:  Ebiz Enterprises, Inc.
                         15695 North 83rd Way
                         Scottsdale, Arizona 85260
                         Attn: President
                         Fax: (480) 778-1001

     9.4 AMENDMENTS AND WAIVERS.

     Any term of this Warrant may be amended and the  observance of any term may
be waived (either generally or in a particular instance and either retroactively
or  prospectively)  only with the written consent of the Company and the holders
of  Warrants to purchase a majority of the  Warrant  Shares.  Any  amendment  or
waiver  effected in  accordance  with this  Section 9.4 shall be binding on each
future Holder and the Company.

     9.5 GOVERNING LAW; JURISDICTION; VENUE.

     This Warrant shall be governed by and construed under the laws of the state
of Utah without regard to principles of conflict of laws.

     9.6 SUCCESSORS AND ASSIGNS; TRANSFER.

     The terms and  conditions of this Warrant shall inure to the benefit of and
be binding on the respective successors and assigns of the parties. This Warrant
may not be  transferred  or assigned  without the consent of the Company,  which
shall not be unreasonably withheld.

     IN WITNESS  WHEREOF,  the Company has executed  this Warrant as of the date
first written above.

                                        EBIZ ENTERPRISES, INC.


                                        By: /s/ Stephen C. Herman
                                            ------------------------------------
                                            Name: Stephen C. Herman
                                            Title: Chief Operations Officer

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                                    EXHIBIT A

                               NOTICE OF EXERCISE


To: Ebiz Enterprises, Inc.

     The undersigned hereby irrevocably elects to purchase ___________ shares of
Common  Stock of Ebiz  Enterprises,  Inc.  (the  "COMPANY"),  issuable  upon the
exercise of the attached Warrant and requests that  certificates for such shares
be issued in the name of and delivered to the address of the undersigned  stated
below and,  if said  number of shares  shall not be all the  shares  that may be
purchased  pursuant to the attached Warrant,  that a new Warrant  evidencing the
right to purchase the balance of such shares be  registered  in the name of, and
delivered  to, the  undersigned  at the address  stated below.  The  undersigned
agrees with and  represents to the Company that said shares are acquired for the
account of the undersigned for investment and not with a view to, or for sale in
connection  with, any  distribution or public offering within the meaning of the
Securities Act of 1933, as amended.

     Payment enclosed in the amount of $___________.

     Dated: ________________

     Name of Holder of Warrant: ________________________________________________
                                                 (Please print)

     Address: __________________________________________________________________


     Signature: ________________________________________________________________
<PAGE>
                                   ASSIGNMENT

     For value  received the  undersigned  sells,  assigns and  transfers to the
transferee named below the attached Warrant,  together with all right, title and
interest, and does irrevocably constitute and appoint the transfer agent of Ebiz
Enterprises,  Inc. (the "COMPANY") as the  undersigned's  attorney,  to transfer
said Warrant on the books of the Company, with full power of substitution in the
premises.

     Dated: __________________________

     Name of Holder of Warrant: ________________________________________________
                                                 (Please print)

     Address: __________________________________________________________________


     Signature: ________________________________________________________________


     Name of transferee: _______________________________________________________
                                              (Please print)

     Address of transferee: ____________________________________________________