Manufacturers can also sell on the Internet commerce marketplace through their distributor agents. As a neutral exchange, the marketplace will use the existing channel infrastructure of the free market economy. This new electronic marketplace enables buyers to search for products and services in an expanded market area. Just as the telephone and fax machine helped buyers expand their trade areas, so does the Internet. As in any free market economy, the laws of supply and demand will determine market pricing.
Competition is the only guarantor of value.
Yes, increased competition can affect pricing, but the Internet can also make competitors more efficient in their operations and more innovative in their marketing approaches. Based on the results of the pilot phase, the net market will introduce venues for purchasing turf seed, golf accessories, equipment parts and portable power equipment. Chemicals were chosen for the pilot first since it appeared to be easiest to implement and test the value propositions - relatively few number of sellers, relatively few products, relatively high order values, and very standardized products used across broad markets. Aggregate data will be used to understand trends, pricing and other broad demographic information. Also, XS Inc. has all its website servers hosted by Digex, the leading provider of such services to Fortune 500 companies.