In the early 1990's an Internet business meant a company that provided the hardware or software necessary for individuals to use the Internet. Sensing a new marketplace, retailers quickly entered the arena. Encryption technology soon made transactions safer, and the marketplace expanded. Today a whole category of marketing businesses and magazines has grown to help companies provide goods and services on the Internet. Suppliers, distributors, and retailers of hard goods can benefit from the usefulness of the Internet as well.
Some businesses choose to expand a traditional business to include a presence on the Internet.
Small companies are able to access a global market, too. Because of lower start-up investment costs on the Internet, these small companies can compete with larger companies to attract customers. The Internet can be used to create or expand a client base. The Internet provides access to consumers around the world. Internet users can also be helpful in providing information about product analysis, advice, or help with problems.