44% of respondents stated that the possibility of competitive information getting into the wrong hands would also prevent them joining. The survey showed that three quarters of companies not using e-marketplaces are greatly concerned that they only focus on price, rather than product quality or human relationships.
For the purposes of the survey, an e-marketplace is defined as a browser-based electronic trading market where, amongst other activities, goods and services can be bought and sold on-line from a wide range of suppliers and partners. Market research firm Gartner Group predicts that worldwide on-line trade will reach $7 trillion by 2004, with approximately 40% of transactions flowing through e-marketplaces.
The ICL survey reports that 15% of companies have joined e-marketplaces so far. However, these e-marketplace users are reporting significant cost and time savings and a further 29% of companies surveyed are currently considering joining an e-marketplace. Nine out of ten users are benefiting from on-line supplier lists and catalogues, 85% cited a reduction in order processing time and 61% said they had reduced purchasing costs as a result of joining an e-marketplace.
Another one in ten of the businesses surveyed is in the process of developing a private marketplace with its suppliers and although 43% of companies have not yet considered joining a marketplace, only 6% have made a definite decision not to do so. However, almost three-quarters of non-users feel they would realise reduced purchasing costs by joining. 69% feel that it would be easier to find the products and services they need using a marketplace with 75% feeling they could even gain access to new markets.