Multivendor catalogs, on the other hand, are more likely to rely on advertising to draw buyers and individual sales calls to draw sellers. In this interim stage, the Net market becomes the primary channel. Enough players are involved to make the market the first and primary destination for buyers and sellers, but it's not yet their exclusive destination. This value is provided before the transaction. At the same time, with more buyers and sellers product costs likely can be reduced.
Buyers can select from more suppliers.
Transaction and workflow benefits increase as more trading partners join the marketplace, but these gains may not be as substantial as product and search cost savings. As the market gains more participants and its value to participants increases, the Net market can raise existing fees and impose new ones, such as advertising. New membership fees may cause some members to leave and may create a barrier for new members to enter into the market. One net market lost about half its sellers after imposing a participation fee. Multivendor catalogs may have difficulty becoming exclusive marketplaces, auctions and exchanges are more likely to reach this phase.