According to a new report, the impact of the internet on the US Business-to-Business (B-to-B) market will exceed $6 trillion in on-line trade by 2005, representing 42 percent of total US B-to-B non-service spending.
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.“

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