Sellers off-load excess inventory. All participants meet new prospective partners. And it has worked that way in some cases. Part of the distrust stems from how marketplaces garner revenue. Buyers pay in some instances, sellers in others, and sometimes both.
Some marketplaces also charge advertising and subscription fees.
Even if companies are willing to shell out the cash to participate, other questions remain. NEC Electronics is exploring joining a major network supplier's marketplace as one of 40 vendors invited to participate, says Michael Turay, senior manager of eBusiness development. He declined to name the supplier. The marketplace is the supplier's private network of contract manufacturing sites and component makers. NEC Electronics' parent company, NEC Corp., was also one of the founders of Converge, an electronic component marketplace, and NEC Electronics is planning on participating in Converge's auction services, though cautiously until he sees some return on investment.