The Open Network for Commerce Exchange (ONCE), an alliance of electronic trading networks, today announced highlights of a bi-annual survey of e-marketplace. It found respondents reported significant growth in both dollar volumes and transaction levels for the first six months of 2002.
Members reported a total dollar volume of US$3.3 billion in transactions during the first half of 2002. Individual marketplaces reported dollar volume growth rates ranging from 10 to 1,200%, representing a weighted average increase of 124%. Responding companies also reported handling more than 1.1 million transactions during the first half of the year. Individual marketplace transaction growth rates ranged from 40 to 2,760%, representing a weighted average increase of 69 percent for all transaction categories – catalogue, non-catalogue and auctions.
“Despite a difficult business environment, ONCE members continue to report significant growth,” says Ray Castelli, ONCE chairman and senior vice president of Strategy and Business Development, Quadrem. “Major companies have adopted our philosophy to connect once with their trading partners around the world and are realising significant benefit. We expect this trend to continue.”
However, more than 90 per cent of responding company executives stated that the primary business goal for 2003 was to “break even” or “become cash positive,” and that programs were in place to achieve it. Specific strategies identified include new customer acquisition, interoperability, business services syndication and cost control. Recent press releases on positive growth and forecasts by several member companies substantiate the goal is within reach.
“There is a strong feeling among members that truly exciting times for B2B commerce are now within sight,” adds Kerry Lamson, CEO of ONCE. “For customers and suppliers, the ONCE alliance offers them huge opportunities for expanding their current markets.”
ONCE identified several trends among reporting companies. Investment in 2002 continued in hardware, software and services, although spend was lower than in previous years. Key areas of continued investment included hardware expansion and upgrades, security and disaster recovery, software integration tools, new business services and content management. In 2003, key areas for investment include platform expansion and stabilisation, customer/supplier integration, web services adoption and upgrading existing functionality.
“The survey results, as well as these announcements, clearly indicate that this sector continues to grow and move toward profitability,” said Cathy Spencer, research director at GartnerG2, the business strategy research division of Gartner.
The Open Network for Commerce Exchange (ONCE) claims to be the largest alliance of electronic trading networks in the world. Through its membership of public and private e-marketplaces, customers, suppliers, service providers and technology vendors, ONCE provides a global platform for interoperability and a forum for the development of e-commerce standards, educational content and best practices. The organisation was formerly known as the Global Trading Web Association(SM) (GTWA).