US Internet B-to-B Trade Soars to $6 Trillion in 2005
Jupiter's research reveals that while this year's Internet B-to-B trade will only represent 3% of the total US B-to-B non-service market or $336 billion, the online volume will grow twenty-fold over the next five years opening the doors for new business models such as net markets and coalition markets. Currently, the direct channel, a model of one seller to many buyers, dominates 92% of the Internet B-to-B market.
However in 2005, 35% 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.