An Interview on Regional Economic Issues --- E-Commerce Could Cut Costs for the Customer

As more goods and services trade hands via the Internet, economists are looking for ways to measure the effects on economic productivity. Their initial findings suggest that while electronic commerce can vastly increase efficiency and cut costs for companies and governments, it also might lower leve...

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Bibliographic Details
Published inWall Street journal. Europe
Main Author This Week with Andrew W. Wyckoff, an economist in the Information, Computer and Communications Policy Division of the OECD
Format Newspaper Article
LanguageEnglish
Published Brussels Dow Jones & Company Inc 19.10.1998
EditionEurope
Subjects
Cost control
Customer services
Distribution costs
Electronic commerce
Internet service providers
Productivity
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Summary:As more goods and services trade hands via the Internet, economists are looking for ways to measure the effects on economic productivity. Their initial findings suggest that while electronic commerce can vastly increase efficiency and cut costs for companies and governments, it also might lower levels of service for customers. Andrew W. Wyckoff, an economist in the Information, Computer and Communications Policy Division of the Organization for Economic Cooperation and Development, explained some of these points to Wall Street Journal Europe technology correspondent Kimberley A. Strassel. The new technology of the Internet operates on a nonproprietary, open-standards basis. That drastically lowers the cost for getting into and operating in an electronic business environment. It means it is economically feasible to link up with not just your first-tier suppliers, but your second and third-tier suppliers. If all those businesses are able to work directly with one another, rather than through intermediaries, there can be significant cost savings. The Internet makes it feasible to use electronic systems to buy small things, like office supplies, travel or even personal computer -- all of which involve significant cost savings.
ISSN:0921-9986