Out With the Old and In With the New
While most companies are bracing themselves for the dot-com shakeout, private e-marketplaces are gaining confidence.
This is not to say that all the public e-marketplaces will wither. Those that survive will function as aggregation points for the private marketplaces of major suppliers. Suppliers will participate in a limited manner, allowing certain brands or certain quantities of particular products to be posted. The markets will charge buyers subscription fees, rather than per-transaction fees, and the buyers will be willing to pay because the cost savings will be significant. The bottom line is that the public e-marketplaces will become merely another sales channel for the suppliers, instead of the be-all and end-all distribution channel.
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