E Bizz

B2B E-Commerce: Business Models and Revenue Generating Activities

Randall D. Harris Department of Management, Operations & Marketing California State University, Stanislaus 801 W. Monte Vista Avenue Turlock, CA 95382 Phone: [phone] Fax: [phone] E-mail: [e-mail]

September 2000

Running Head: B2B E-Commerce

B2B E-Commerce

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B2B E-Commerce: Business Models and Revenue Generating Activities

Abstract The connectivity offered by the Internet has opened up the possibility of frictionless interaction between businesses. This article reviews the current state of the art in business to business (B2B) electronic commerce business models. Transactions on these B2B platforms take a variety of forms, and this article also reviews the current transaction platforms for these activities. The article concludes with a review of current revenue generating activities that occur on B2B websites.

B2B E-Commerce B2B E-Commerce: Business Models and Revenue Generating Activities

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Business to business (B2B) transactions over the Internet have risen sharply. From the $100+ billion level in 1999, B2B E-commerce transactions are anticipated to top $1.3 trillion by 2003 (Weller, 2000). One reason for this explosive growth is that the Internet infrastructure represents a common platform for all business, and the foundation for this common infrastructure is largely in place (Phillips & Meeker, 2000). The result for business has not necessarily been a smooth transition. The potential for the global economy to be streamlined, disintermediated and then reintermediated (Austrian, et. al., 2000) has placed a tremendous strain on established business practices. “While the common belief was that the Internet would do away with many intermediaries, the exact opposite is occurring, as a new crop of intermediaries is emerging” (Weller, 2000, p. 4). A number of arguments have been articulated to justify the shift to an electronically

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