The company didn't have to buy new computers or hire a roomful of techies to make the move. It's easy to see why some small and medium-sized businesses would give the Internet a try. Ordering flowers for a big holiday such as Valentine's Day would have meant being on the phone for about five hours with a wholesaler in Albany. Others aimed to bring many vendors of various products and services into one electronic marketplace. Theoretically, both buyers and sellers should benefit in the electronic marketplace.
Business models vary, but many generate revenues by charging a per-transaction fee.
Some charge subscription or sponsorship fees. But many of these exchanges have found that potential demand hasn't always translated into actual sales. Richard Villars, an analyst with International Data, a market research firm in Framingham, Mass., said getting the right mix of sellers and buyers has turned out to be quite a challenge. He sees many smaller companies willing to sell their products online, hoping to reach a bigger market. But fewer are willing to buy via Internet because they are unsure of the products or service they might receive.