E-Commerce Comes to the Supplement IndustryE-Commerce Comes to the Supplement Industry

E-Commerce Comes to the Supplement Industry
by Peter Huck

For many casual observers, the enthusiasm greeting Internet companies can beconfounding. Publicly traded Internet companies typically have market values that are upto 30 times their revenues, whereas typical (offline) companies are in the one- tothree-times range. The most well-known e-commerce business, <ahref="http://www.Amazon.com">www.Amazon.com

, is growing incredibly fast in terms ofrevenues but is making no money. Still, people keep gobbling up its stock. Not only that,but savvy venture capitalists are throwing money at any start-up company with an idea anda promise to be the Amazon.com of this or that category. Never mind that these companieshave yet to turn a profit and likely will not do so in the immediate future. What's goingon here?