Read Bennett Gold LLP's privacy policies and practices regarding this web site.
LINK TO: Bennett Gold LLP's Privacy Policies and Practices. E-CommerceALERT.com is part of the Bennett Gold LLP web site network.
LINK TO: Bennett Gold LLP, Chartered Accountants, home page.
LINK TO: E-CommerceALERT.com Home Page.
CLICK to GO BACK to Main Page.

Research and retrieval of news articles by Bennett Gold LLP, Chartered Accountants


SPECIAL NOTE TO ALL VISITORS:
Effective December 31, 2012, articles are no longer being updated on this web site.
The site is now maintained as an historical archive, covering articles from the period 1999 to 2012.


US B2B MARKETS PREDICTED TO REACH $6 TRILLION IN 2005

Source: InternetNews.com

Posted on June 29, 2000

      Online B2B transactions are expected to reach more than $6 trillion by 2005, representing 42 percent of total business-to-business non-service spending in the United States, says a new industry study.

      The research from Jupiter Communications Inc. says that while this year's B2B trade on the Internet will only represent 3 percent of the total U.S. B2B non-service market or $336 billion, the online volume will grow 20-fold over the next five years, "opening the doors for new business models such as net markets and coalition markets."

      To take advantage of this growth, Jupiter (NASDAQ:JPTR) said it is advising that businesses begin now to incorporate Internet strategies throughout their procurement and sales processes, and invest in multiple selling models "to leverage market disruptions while protecting share of market."

      Currently, the direct channel, a model of one seller to many buyers, dominates 92 percent of the Internet B2B market. However in 2005, 35 percent of the Internet B2B 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, Jupiter said.

      "The value proposition of the Internet is on a grander scale for the B2B space; the sheer size of B2B trade, coupled with inefficient processes, makes the Internet migration of business strategies very attractive," said Melissa Shore, senior analyst for Jupiter.

      "Early adopters have already made their investments, but it will be the mainstream companies that now embrace the Internet and will drive it to mass penetration.

      "Over the next several years, businesses will face an array of new opportunities to improve and expand their sales and procurement processes," she said. "They must invest now even though the payoff will take some time; it will require several years to see a substantial migration from today's manual, paper-based solutions to tomorrow's Internet purchasing counter."

      Shore advises that businesses also must look to diversify their investments across multiple models and partners. All companies are not in the same position; businesses must allocate their resources according to the company's market power within their specific industry.

      Companies with stronger market power should allocate more of their investment toward the direct selling model, while those lacking power should seek opportunities to differentiate themselves within net or coalition markets, she said. The new B2B e-commerce research was unveiled at the inaugural Jupiter B-to-B Commerce Forum on June 26/2000 in San Francisco.




CLICK to GO BACK to Main Page.

E-Commerce Alerts are issued by Bennett Gold LLP, Chartered Accountants as situations develop. Bookmark this site and check back often. Our e-mail address is: info@BennettGold.ca

In accordance with United States Code, Title 17, Section 107 and Article 10 of The Berne Convention on Literary and Artistic Works, the news clippings on this web site are made available without profit for research and educational purposes.


ALERT
ARCHIVES
Final Entries
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999


LINK TO: Bennett Gold Chartered Accountants: A Licensed Provider of WebTrust Services.

WebTrust Is Your
Best Defense
Against
Privacy Breaches.

Get WebTrust
Working For
Your Site.