It takes more than passion and an HTML editor to be an e-tailer. Entrepreneurs face high costs in getting stores up and running online. However, a June 2000 survey by SmartAge.com and Intelliquest showed that 77 percent of businesses spent less than $5,000 to build their Web sites and that 76 percent of respondents found "expert advice" to be the most valuable information online. That's where "e-marketplaces" come in to fill the needs of tech-inexperienced entrepreneurs.
IDC defines an e-marketplace as "a third party that establishes itself as a community builder where buyers, suppliers and third parties can exchange information and conduct business via a shared catalog, an open auction site or an exchange." IDC predicts e-marketplaces will become major points of entry into online commerce for entrepreneurs.
Some e-marketplaces, such as BizProLink.com and SmartAge.com, have already opened their virtual doors. Various services provided by e-marketplaces usually include setting up home pages with e-commerce capabilities, and assistance with advertising and promotion. For example, a five-page Supplier Storefront with BizProLink costs $450 per month. Web site hosting, management and incubator-type services are also showing up. A custom-built Web site with an e-commerce package starts at $2,499 with a $170 monthly fee at SmartAge. These offerings cater to less tech-savvy entrepreneurs and brick-and-mortar businesses that are looking to take advantage of the Web.
The appeal of the slew of new e-marketplaces is best summed up by their catch phrases:
Biztro: "The best way to run your business."
eBay Business Exchange: "The Small Business Marketplace."
Microsoft bCentral: "Drive your business forward."
ShopNow.com: "More ways to shop and sell."
- IDC, (800) 872-8200, www.idc.com/ebusiness