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...sold laboratory chemicals in beaker quantities, ChemConnect focused on industrial chemicals sold by the railcar--a market in which there are fewer transactions but much more money involved. "I've spoken to suppliers who had a corporate edict that they were not going to participate in this type of auction because it would only drive prices down," says Michele Hincks, ChemConnect's marketing vice president. "They regretted it because they lost a market...

Author: /time Magazine | Title: E-Commerce: B2B Survivors | 12/24/2001 | See Source »

...buckets and food packaging. Until Eastman set up its website, Mitchell fielded 40 to 50 calls a day from potential buyers and haggled over prices for hours. "I was getting cauliflower ear," she says. Now she simply tells the buyers when to log on to the website for an auction. Within 15 minutes, it's all over, with an e-mail message going out automatically to the winner. But when supplies of polyethylene are scarce, Mitchell stops doing auctions and doles it out to select buyers with whom the company has long-term relationships...

Author: /time Magazine | Title: E-Commerce: B2B Survivors | 12/24/2001 | See Source »

Creating your own private exchange, however, can easily cost $5 million or more. One alternative is the route taken by Diebold, a Canton, Ohio, maker of safes and ATMs, which has hired FreeMarkets to conduct online auctions for it. FreeMarkets acts as a corporate matchmaker, combining the services of a broker, an auctioneer and a software designer. FreeMarkets seeks out suppliers, ensures they can meet specifications, then invites them to either participate in a real-time auction online or submit sealed bids...

Author: /time Magazine | Title: E-Commerce: B2B Survivors | 12/24/2001 | See Source »

Some suppliers have balked, and in a few cases Diebold has decided not to hold an auction just to preserve those relationships. But it has also found new suppliers. Diebold has realized at least a 15% savings on commodities bought through FreeMarkets, more than enough to justify the flat fee that Diebold pays for the service...

Author: /time Magazine | Title: E-Commerce: B2B Survivors | 12/24/2001 | See Source »

...Best Dotcom Survivor With the simplest of business models - matching buyers to sellers and taking a percentage of each completed sale - the online auction powerhouse eBay rode out the wave of antitech sentiment that drowned many other former stars. The company has grabbed about 90% of the online consumer auction market. Almost 38 million registered users can't be wrong...

Author: /time Magazine | Title: Business | 12/24/2001 | See Source »

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