The costs incurred when a customer changes from one supplier or marketplace...

The costs that a customer will incur if he/she switches from the current provider of a product or service to another provider. Some sellers try to make these costs as high as possible, so that once they have locked in a customer it will be difficult for that customer to leave.

Costs incurred in changing suppliers or marketplaces. Net markets often seek to re-architect procurement, search, and other processes so buyers stay put, a key reason switching costs are higher in business-to-business than consumer e-commerce. (See lifetime value of the customer, churn).