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New Mostly true
What you're saying is all true (and I'll send back comments to Andrew about it), but there are notable exceptions. For instance one of the companies that was trying to create a frictionless market happened to be a site named AuctionWeb that was hosted at [link|http://www.ebay.com/|http://www.ebay.com/].

It didn't exactly fold. ;-)

Cheers,
Ben
I have come to believe that idealism without discipline is a quick road to disaster, while discipline without idealism is pointless. -- Aaron Ward (my brother)
New Andrew's obviously talking B2B
Interesting statistic would be: what percentage of commerce is B2B vs B2C? If, for instance, B2B makes up 80% of all commerce, existing relationships and single points of contact will be much more valuable than lowest price.
===

Purveyor of Doc Hope's [link|http://DocHope.com|fresh-baked dog biscuits and pet treats].
[link|http://DocHope.com|http://DocHope.com]
New My very favorite was a B to C
WebVan, an online grocer. They deliberately and firmly refused to have anyone in the company from the "old economy". With no exerienced buyers they were paying a lot more for everything than established grocers, and with nobody who knew anything about warehousing and distribution they ran through an incredible amount of money in an incredibly short time. I guess that's what the "new economy" was all about, but it's old now.

I have one of their refrigerator magnets and the liquidator's auction catalog around here somewhere.
[link|http://www.aaxnet.com|AAx]
Expand Edited by Andrew Grygus March 4, 2005, 06:08:19 PM EST
New Oops!
I have come to believe that idealism without discipline is a quick road to disaster, while discipline without idealism is pointless. -- Aaron Ward (my brother)
New I don't know the breakdown...
but I think that I've seen claims that most business is business to business.

Certainly that's been true of every job that I've had, it has all been companies that were business to business. (Some consumers may have thought that Rent.com was doing business with them, but we weren't. Like in advertising, consumers are product, not customers. Though obviously we can't actually treat them as product and still successfully deliver them...)

Cheers,
Ben
I have come to believe that idealism without discipline is a quick road to disaster, while discipline without idealism is pointless. -- Aaron Ward (my brother)
New But it isn't exactly frictionless . . .
Seems there's a fair amount of friction between eBay and their sellers with this year's annual fee increase (and they've had to back off a little on some fees).
[link|http://www.aaxnet.com|AAx]
New True but...
that's far less friction than used to exist in the same market. It is like comparing moving a puck across sandpaper as opposed to air hockey. Sure, there is friction in air hockey, the puck will not travel forever, but compared to sandpaper it might as well not be there!

Cheers,
Ben
I have come to believe that idealism without discipline is a quick road to disaster, while discipline without idealism is pointless. -- Aaron Ward (my brother)
     Here's as good as anywhere, questioning Metcalfe's Law - (ben_tilly) - (30)
         I stopped at the point where - (Arkadiy) - (15)
             He's not saying what you think - (ben_tilly) - (14)
                 At least two of his examples are wrong - (Arkadiy) - (13)
                     Disagreement - (ben_tilly) - (12)
                         One counter-example, and a possible new POV - (drewk) - (3)
                             That's not entirely a counterexample - (ben_tilly) - (2)
                                 You got the analogy, but missed the point - (drewk) - (1)
                                     Chicken and egg on value - (ben_tilly)
                         OK, I finished reading - (Arkadiy) - (7)
                             If n^2 holds for users... - (ben_tilly) - (6)
                                 Switching is not same as joining - (Arkadiy) - (5)
                                     Larger by 30% wins? - (ben_tilly) - (4)
                                         I guess I should re-read - (Arkadiy) - (1)
                                             Read section 4 - (ben_tilly)
                                         There's your example :-) - (drewk) - (1)
                                             More valuable to you, yes - (ben_tilly)
         I have come to the conclusion... - (folkert)
         Re: Paper. - (a6l6e6x)
         Something else I just realized - (drewk)
         The mathematics is interesting and I presume . . - (Andrew Grygus) - (7)
             Mostly true - (ben_tilly) - (6)
                 Andrew's obviously talking B2B - (drewk) - (3)
                     My very favorite was a B to C - (Andrew Grygus) - (1)
                         Oops! -NT - (ben_tilly)
                     I don't know the breakdown... - (ben_tilly)
                 But it isn't exactly frictionless . . . - (Andrew Grygus) - (1)
                     True but... - (ben_tilly)
         Ben, do you mind if I cite this for a paper? - (jake123) - (2)
             You can cite this, if unpublished papers are acceptable - (ben_tilly) - (1)
                 No, it works as it's on the net - (jake123)

Bring me more whiskey and rye!
71 ms