But they should not be concentrating on owning e-marketplaces because they can never generate the kinds of numbers that large corporations can. They should concentrate instead on joining existing e-marketplaces which they feel will benefit them the most. Stationary traffic One sector attracting a number of B2B-type ventures in the UK is office supplies and services. These are essentially Web sites through which businesses negotiate bulk discounts on everything from stationery to IT equipment. One such venture is GroupTrade, which in August secured second-round funding of 10.2 million from 3i and Telewest.
Customers access the site for free through a regular browser.
GroupTrade's revenue comes in taking a cut from suppliers, who benefit from access to a new marketplace. I've maintained for years that businesses get ripped off by office suppliers. As soon as you mention you're a business, all the prices go up. These marketplaces can reap huge benefits for the companies that run them. Cardiff-based AceQuote has seen trade increase from 5 million to 10 million within three months.