Dynamic Pricing Plays Critical Role in the Growth of B2B eCommerce, According to IDC

FRAMINGHAM, MA – DECEMBER 12, 2000 – As business-to-business (B2B) ecommerce grows, the value of goods and services sold through dynamic pricing sites will increase more rapidly than overall B2B sales. According to IDC, the percentage of worldwide B2B ecommerce that is dynamic will jump from 5% in 2000 to 13% in 2004. In the United States, dynamic pricing will represent 20% of B2B ecommerce in 2004.

 

Although dynamic pricing is on the rise worldwide, geographic and cultural factors play crucial roles in determining the extent to which it catches on, said Rob Rosenthal, research analyst for IDC’s Internet Economy program. In Europe, where venture capital is sometimes difficult to obtain, localization and reaching potential customers could slow dynamic pricing activity. In Japan, where business relationships are most important, the use of dynamic pricing for ecommerce will most certainly lag that of both the United States and Western Europe.

IDC believes commodities and unique goods are the mainstay of today's dynamic pricing sites. Next will come raw materials and components the lion's share of B2B ecommerce. Negotiated pricing systems best enable companies to buy and sell based on their overall value propositions, rather than simple price. However, many emarketplaces need to build a clientele and work the bugs out of their transactional models before dynamic pricing can play an important role in ebusiness solutions.

IDC’s Internet Economy program's new bulletin Dynamic Pricing in eMarketplaces: A Definition and Forecast (IDC #B23396) examines the various dynamic pricing models emerging in the B2B market and forecasts the value of goods and services sold to businesses via dynamic pricing systems. To purchase the bulletin, contact Demetra Georgakopoulos at 1-800-343-4952, extension 4496, or demetra@idc.com.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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