The current model for business-to-business Internet markets has no future, says PaperX, an organization that operates a marketplace for the paper industry. E-procurement systems are advertised as increasing efficiency and reducing costs, but most charge a fee per transaction, thereby incurring more expenses the more they are used. With participants becoming more wary of transaction charges, the alternative is to charge a flat fee. This should change the perception of the marketplace operator from a barrier to a facilitator between the buyer and the supplier. According to specialist Silicon.com, industry analysts now recognize the inevitability of the flat-rate model. But researchers Sullivan and Frost caution that “even a flat fee is going to look unattractive, unless companies add some real value to their service.”
Based on a report from i-FM
