Being a Real B-2-B


Business to Business e-commerce has already surpassed the highly publicized the Business to Consumer sector, and it will continue to do so. For this reason many B-2-C companies are trying to cash in on it. B-2-C companies are attempting to change their business models to incorporate a B-2-B platform, but most investors are having no problem seeing right through this.

"B2B eCommerce will hit $2.7 trillion in 2004. While Internet trade between individual partners will continue to flourish, eMarketplaces will fuel most of the growth -- reaching 53% of all online business trade in five years."

Where Business to Business e-commerce will truly differentiate itself is in what are being called B-2-B Hubs. Hubs are two-way networks that mediate between buyers and sellers, and create benefits for both sides. These hubs will be broken down into four separate models, Catalog, Auction, Exchange, and Barter. Unfortunately, competition will be feirce, often only allowing one dominant hub in an industry.