When phones became ubiquitous, I suspect profit margins may have fallen among merchants because of the ability to more easily compare prices. Eventually, however, buyers have to finance both the seller's profit and the additional cost of supporting the new channel. The e-discount sites that are selling products at or below cost will ultimately raise their prices or go out of business, leaving a few battered survivors to get their revenge on customers. All channels also have poor execution in common. Mediocrity already prevails on the Internet in terms of buyer and seller behavior.
Most Web sites are pretty boring and are poorly structured and designed.
Just as we often can't find what we want in a physical store with a confusing layout, market researchers tell us that a majority of e-customers have left Web sites without finding the product or information they were looking for. In that respect, e-business is no different from the other channels. The best companies in e-commerce will ultimately be those that hire the best people, work the hardest, build the best infrastructures and develop the most efficient and effective business processes. Being on the Internet first won't matter much in the long run. Take USAA, the highly successful insurance company with roots in serving military officers.