Based on the case of China’s timber market, the paper analyses the impact of information standardization on the improvement of market efficiency. Information standardization can week the extent of asymmetric information, reduce the information costs in trade, and hence enlarge the market scale. Our microeconomic model shows that, if there is uncertainty in the market demand and market supply, the trader’s loss due to the unbalance of the market will be reduced as the market scale increasing. Therefore, information standardization will benefit the traders from scale economy.