Jupiter Communications, the company behind the research, recommends
that businesses implement internet strategies throughout their
procurement and sales process, and invest in multiple selling
models to protect their share of the market.
The research reveals that, while this year’s Internet B-to-B
trade will only represent three percent of the total US B-to-B
non-service market or $336 billion, the on-line volume will grow
twenty-fold over the next five years, opening the doors for new
business models such as net markets and coalition markets.
In a statement, the company said:
“Currently, the direct channel, a model of
one seller to many buyers, dominates 92 percent of the Internet
B-to-B market. However, in 2005, 35 percent of the internet B-to-B
trade volume will be conducted via a net market, a model of many
buyers and many sellers, or through a coalition market, comprised
of a consortium of buyers or sellers. Net markets can completely
disrupt current channels and alter how companies and industries
conduct business. While many factors can power net market
penetration in a given industry, the degree of fragmentation and
price volatility remain as two critical drivers.“
