Internationally, the cost of shipping consumer goods such as compact discs are prohibitive. Miami's Asista, for instance, is setting up marketplaces in Mexico, Argentina and Brazil. But international trade will have to wait until the concept becomes widely accepted in Latin America, said Carlos Guahardo, head of the company. Right now, Latin American companies don't view the Internet as a productivity tool. Rather, they typically restrict employee access to it, and some countries have regulatory systems that effectively limit the growth of e-commerce.
Businesses spend more.
And companies don't have to engage in costly consumer retail marketing programs. Furthermore, shipping and distribution costs often meant the customers of online retailers didn't save much. Culturally, the use of the Internet varies widely by country. Technologically, the proliferation of online marketplaces means users must make the time-consuming effort to surf among many. And in terms of operations, businesses often find that dealing with regular suppliers is far more desirable than heading to the Internet for each item, particularly with critical goods, said Monczka, the research professor.