<B>E-Commerce Hits Recycling Industry</B>

As in the business world, the recycling industry can not escape the invasion of e-commerce and B2B. But unlike the retail world of e-commerce and conducting transactions online, transplanting the same ideas to the recycling industry is a bit more of a challenge, with issues unique to the recycling industry presenting themselves.

And some of the challenges and successes of e-commerce in the recycling industry were presented to about 75 people at the "E-Commerce and Recycling Market Development" session at the National Recycling Coalition Annual Congress and Exposition.

Materials specific to a location was one of the major issues presented in the B2B world of recycling. Once one may find materials online to purchase, where these materials are located can become a problem. Transportation costs can quickly make an economical deal not so cost savings if a material needs to be trucked across the United States.

Jeff Morris, Sound Resources Management, Bellingham, Wash., says materials are not only location specific, but the condition is specific as well. "You need some idea of what you are getting," he said, as purchasing materials online often means site unseen before the check is written.

One suggestion he gives is to take the e-Bay approach to selling and offer sellers histories and a ranking system. A shaky dealer can often become blackballed online if they do not deliver what they said they would.

He also said that it is often feared that conducting business online will eliminate the need for brokers or the "middle-man." But he said that the function of that broker is an important one and that he does not see brokers disappearing anytime soon.

And although there are some Web sites actively trading and brokering materials, that there are still many issues to overcome before B2B becomes a commonplace in the recycling industry. But, the good news, he says, is that there are still many options out there. -- Melissa Goodrich. The author is associate editor of Recycling Today magazine.

September 2000
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