The Internet provides every Internet user with an unprecedented wealth of information. This virtually limitless availability of information leads to increased cost transparency for companies and price transparency for consumers.
E-markets in business-to-business( B2B) enable real-time cost transparency about the prices of products and services for companies and lead to a reduction in procurement costs. End consumers have price transparency with just a few clicks through search engines, price comparison software and marketplaces in the B2C area such as Amazon.
The high price dispersion in the market that was common before the Internet is quickly apparent to the customer. This makes it difficult, for example, for stationary electronics suppliers to push a higher price through to customers, as they can scan the barcode with their smartphone to obtain price transparency for a particular product within a few seconds and can buy the product and have it delivered with just one click. The increased cost and price transparency leads to significant shifts in sales in the market. The winners are the pure online providers, who have the price leadership in the market through cost advantages.