Clearly, we are still in the early generations of e-commerce. As recent stock corrections have shown, even the Internet cannot obsolete the basic tenets of good business. Foremost among these is the premise of excellent customer service. Many customers still want to reach a live person regarding questions and/or issues. They want to be assured that their order will be delivered correctly and on time.

The next-generation online marketplace will be a hybrid combining the benefits of user-centric online information and purchasing with traditional sales, service and distribution logistics support. A successful marketplace will balance traditional and virtual commerce, providing a way for design engineers and production buyers to research, compare and buy electronics components. It will offer end-to-end functionality, financial stability and excellent customer service.

The personal component of business relationships is also very important. Although the Internet changes everything, human behavior and habits are slow to change. Next-generation online markets will provide the speed and convenience of e-commerce without alienating customers who prefer to shop the traditional way. This new integrated approach should help migrate customers to Internet options at their own pace, while continuing to offer a variety of sources for information and contact.

The ideal digital marketplace will provide reliable independent technical data, a wide selection of products from varied sources and guaranteed quality goods. It will feature "indirect" specialty products that support manufacturing and test as well as a large franchised inventory of electronics components. It will have global reach and be supported by customer service from "real human beings" as well as an efficient back-end distribution and billing process. It will offer a variety of service options-fax, phone, or face-to-face with a personal service representative-all on a single integrated platform.

Many electronics Internet sites now exist, but sources are fragmented and until recently, none had competence across the entire purchasing process. Some online sites have stressed technical content and research capabilities, while others emphasized professional online "communities" or "hard-to-find" parts.

E-commerce is reaching a saturation point. The electronics industry, with some 20 online portals (compared with four or five in other sectors) is a benchmark for the B2B industry. There is no clear leader as of yet, but pundits and analysts are already placing their bets.

To succeed, companies must make improved customer service their primary focus, giving electronics professionals more convenience and choice at every step.

Sean J. Powers III is Chairman and Chief Executive of Echips Inc. (San Jose, Calif.).