Study: Australian B2B market to peak in 2005

Australian business-to-business (B2B) e-commerce will increase in value from $US3 billion in 2000 to a massive $US66 billion by 2005, according to a study by International Data Corporation (IDC).

          Australian business-to-business (B2B) e-commerce will increase in value from $US3 billion in 2000 to a massive $US66 billion by 2005, according to a study by International Data Corporation (IDC).

          According to the IDC senior analyst Brooke Galloway, e-marketplaces are growing at a compound annual growth rate of 188% and will account for 45% of the overall market value by the end of the forecast period.

          Access to new markets, lower operating costs and improved supply chain management will continue to be the key drivers behind B2B e-commerce growth, but Galloway warns there are still some barriers.

          "There are still inhibitors to further adoption, like lack of experience and case studies; this is in addition to security concerns, integration into existing processes and applications as well as a lack of standards," she says.

          As a novelty business model, Galloway says e-marketplaces will be the most interesting to watch.

          In terms of revenue, she says e-marketplaces may opt for a transaction fee-based solution or the go for the membership fees option.

          Galloway says industry-specific content may help an e-marketplace obtain a better position in the quest to become a market leader and additional services such as e-business consulting may provide another revenue stream.

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