Electronic commerce: three emerging strategies

The early promise of electronic commerce is bearing fruit for business-to-business trade. Marketplaces that connect buyers and sellers are up and running in many product categories, and are creating value by making trading more efficient. But the rewards are not evenly distributed. Third-party intermediaries that organize marketplaces can capture value in the form of transaction commissions and fees for value-added services. Sellers can benefit by reaching more customers, targeting them more effectively and serving them better. But the best rewards will fall to buyers. Readily able to compare products and prices, they will compel their suppliers to compete more fiercely than ever.