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Electronic commerce enables business development for marketing channel intermediaries and strengthens their existing operations and strategic management. This research shows that electronic commerce provides stepwise business development refinement and repositioning in the form of process change and increased customer service. Based on marketing and logistics literature, a business development model with three developmental phases is proposed in this paper. The findings are based on the electronic commerce development of three intermediaries providing industrial products and services in the northern European market. Refinement is achieved through a focus on activities for internal efficiency, and through changing processes for increased integration, shorter time and lower costs. Repositioning involves extended focus on service improvements, image and customer tailored services. It is found that electronic commerce has not radically reshaped and developed the role of marketing channel intermediaries. Instead, it has strengthened existing business. Future electronic commerce efforts need to be viewed in a business wide development context, including structural change and reaching new segments or markets, to utilise fully the development potential of electronic commerce.