Yes, the problem with Internet transactions is the same as the ones with mail order, the possibility of fraud, the long time it takes to package and send the goods etc. Using the Internet to sell the Internet (web hosting, online game subs etc.) works, because delivery is instantaneous, and there's very little possibility of fraud or theft because it's not a physical good.

Using the Internet to sell physical goods is a lot more difficult because of the possibility of fraud, the non-existence of instant gratification, the difficulty of returning something that's defective etc.

This post has been edited by wodenus: Jun 2 2010, 01:44 PM