Hawaii is one of the nation’s leaders in e-commerce for economic diversification, new business opportunities and streamlining government services, according to the Hawaii Department of Commerce and Consumer Affairs.

The state website says that this has been possible because of two major factors: Hawaii’s position and infrastructure as a technological hub for telecommunications in the Pacific region and legislation that encourages the development of the high technology industry.

A few years back, Hawaii ranked 7th in the nation when it came to e-commerce, according to The Progressive Policy Institute’s “Best States for E-Commerce” report.

As the online market continues to grow at warp speed, Hawaii remains a place where e-commerce flourishes as an essential piece of the economic puzzle.

"In Hawaii we have an advantage of doing business over the Internet because we have the infrastructure, i.e. the high-speed Internet connection," says Qimei Chen, Ph.D., chairperson and Shidler Distinguished Associate Professor of Marketing at the Shidler College of Business, University of Hawaii at Manoa. "Hawaii actually was ranked as the highest residential broadband penetration state as early as in 2004."

Chen notes, however, that if your e-commerce business includes actual products that need to be physically shipped, Hawaii¹s location can also pose a challenge.

"Being so far away from the Mainland, it’s difficult to sell a product like coffee or clothes because of the shipping charges," she says. "This can be a disadvantage."

Local organizations that have been successful in developing the online component of their business are also on the rise, however. Two examples of companies that have upgraded and expanded their websites and seen great success are Hawaiian Airlines and Bank of Hawaii, says Chen. 

About a year ago, Hawaiian Airlines made a move to redesign their website, but far from being a one-time upgrade, the airline is continuously improving and developing their web content every few months.

"We felt that there was an opportunity to better serve our consumers with a website that was faster and easier to use — easier for them to shop and find the best fare," explains Alissa Reiter, senior director of Internet marketing for Hawaiian Airlines. "On the visual side, we also felt we could do better justice to the beauty of the state by adding and continuously changing the ‘wallpaper’ of the website to feature various Hawaii scenery. We wanted a first-time customer to see our home page and feel like they just had to get to Hawaii."

That’s exactly what customers ended up wanting to do. "Customers will call or email us asking us where the photo on our website is from and saying, ‘I want to go there!’" says Reiter. "There is a lot of innovation on the web, and in our business more consumers are booking online or doing more research online."

Hawaiian Airlines organized the redesigned site into three main sections: booking, managing your account and exploring Hawaii. You can also manage your account online, check a flight status or do early web check-in. In addition, you can find special offers, destination guides and maps, as well as utilize the site’s trip planner.