Boom in business-to-business electronic commerce anticipated

[March 10th 1999]

Business-to-business (B2B) electronic commerce in the United States is about to enter a high-growth phase, increasing at compound annual growth rate of 41% over the next five years, according to the Yankee Group. B2B e-commerce transaction volume will grow from $138 billion in 1999 to more than $541 billion in 2003, the firm projects.

The Yankee Group defines B2B e-commerce as the entire commerce cycle, from awareness to product research, comparison, selection, supplier sourcing, transactions, fulfilment, and post-sales support.

The Yankee Group believes that buyers will drive B2B e-commerce growth, as companies of every size will adopt B2B e-commerce procurement for its convenience and cost-savings potential.

Overall, four company types will emerge as the winners, according to the Yankee Group:

• Trenchant Buyers, who leverage B2B e-commerce procurement ease-of-use to negotiate more favourable supplier discounts;

• Vigilant Sellers, who capture more of each customer's total purchases by providing convenient, buyer-centric B2B e-commerce offerings;

• Cybermediaries, who create a powerful position for themselves by bringing together previously unknown buyers and sellers;

• Internet Solution Providers, who provide the enabling technologies to support these B2B e-commerce efforts.

Links
Yankee Group		http://www.yankeegroup.com