E-Marketplaces (Reaction Blog)

Posted: June 30, 2012 in Uncategorized

What is the definition of the Electronic marketplace?

An electronic marketplace or e-marketplace is a web-based application facilitating electronic trade between one or more buying organisations and several supplier organisations. http://www.qfinance.com/dictionary/e-marketplace

Another meaning of E-matketplace

An e-marketplace is a virtual online market where organisations register as buyers or sellers to conduct business-to-business e-commerce over the Internet. There are many types of e-marketplace based on a range of business models. They can be operated by an independent third party, or be run by some form of industry consortium that has been set up to serve a particular sector or marketplace. Services offered by e-marketplaces include electronic catalogues for online purchasing of goods and services, business directory listings and online auctions.http://www.netlawman.co.uk/internet-ecommerce/e-marketplaces-online-auctions-exchanges.php

Electronic marketplace also is an Internet-based environment that brings together business-to-business buyers and sellers so that they can trade more efficiently online.

The key benefits for users of an e-marketplace are reduced purchasing costs, greater flexibility, saved time, better information, and better collaboration. However, the drawbacks include costs in changing procurement processes, cost of applications, set-up, and integration with internal systems, and transaction/subscription fees.

http://www.qfinance.com/dictionary/e-marketplace

E-marketplace has a different types that divided into a different categories the operated into a business. These are the followings:

  • Independent e-marketplaces
  • Buyer-oriented e-marketplace
  • Supplier-oriented e-marketplace
  • Vertical and horizontal e-marketplaces

►An independent e-marketplace is usually a business-to-business online platform operated by a third party which is open to buyers or sellers in a particular industry. By registering on an independent e-marketplace, you can access classified ads or requests for quotations or bids in your industry sector. There will typically be some form of payment required to participate.

►A buyer-oriented e-marketplace is normally run by a consortium of buyers in order to establish an efficient purchasing environment. If you are looking to purchase, participating in this sort of e-marketplace can help you lower your administrative costs and achieve the best price from suppliers. As a supplier you can use a buyer-oriented e-marketplace to advertise your catalogue to a pool of relevant customers who are looking to buy

►Supplier-oriented e-marketplace is also known as a supplier directory, this marketplace is set up and operated by a number of suppliers who are seeking to establish an efficient sales channel via the internet to a large number of buyers. They are usually searchable by the product or service being offered.

Supplier directories benefit buyers by providing information about suppliers for markets and regions they may not be familiar with. Sellers can use these types of marketplace to increase their visibility to potential buyers and to get leads.

►Vertical e-marketplaces provide online access to businesses vertically up and down every segment of a particular industry sector such as automotive, chemical, construction or textiles. Buying or selling using a vertical e-marketplace for your industry sector can increase your operating efficiency and help to decrease supply chain costs, inventories and procurement-cycle time.

A horizontal e-marketplace connects buyers and sellers across different industries or regions. You can use a horizontal e-marketplace to purchase indirect products such as office equipment or stationery.

http://www.business.scotland.gov.uk/bdotg/action/detail?itemId=1075387418&site=202&type=RESOURCES

E-marketplaces has a components  this are the Customers, Sellers, Products and services, Infrastructure, Front end, Back end, Intermediaries, Other business partners, and Support services.
According also to (Prentice Hall  @2006) PDFs , marketplaces have three different main functions. First, by matching the buyers and the sellers. Second, Facilitating the exchange of information, goods, services, and payments associated with market transactions; and finally by providing an institutional infrastructure, such as a legal and regulatory framework, which enables the efficient functioning of the market. This three functions help us to understand on how the electronic marketplaces perform or useful for the economy today especially to the company or the business in every edge of this world.

Electronic marketplaces (e-marketplaces or marketspaces), changed several of the processes used in trading and supply chains
– Greater information richness
– Lower information search costs for buyers
– Diminished information asymmetry between sellers and buyers
– Greater temporal separation between time of purchase and time
of possession
– Greater temporal proximity between time of purchase and time
of possession
– Ability of buyers and sellers to be in different locations

Competitive Factors in the Internet Economy (with my own understanding)

Lower prices – in this factor when the sellers set a lower product, the company can get a many buyers of their products because it is easy to reach the price.

Customer service – a factors that very need in the economy the satisfaction of the customer is very important wherein if they are satisfied to the service they will return and invite the other customers.

Barriers to entry are reduced – try to avoid the possible problems that may enter to the company in able not became the reason of hassle to the company or if the company cannot avoid this situation , make the best solution for the problems to solve it.
Virtual partnerships multiply –provides  business and home-life support as and when it is needed. It is the smart solution to managing your workflow, whether it’s business or personal.

Market niches abound –The Internet has opened up all sorts of niche marketing opportunities that either never existed before, or were too expensive to tap into.

► In reading this topic and searching for the different meaning of each topic, I found that the Electronic Marketplaces is not just for the company or business purposes it may also become a part of our personal needs and activity that help us in doing an easy work, ideas, knowledge, information and the efficiency and effectiveness about this in our economy.

http://www.dbis.cs.uni-frankfurt.de/downloads/teaching/Ecommerce-Vorlesung/2011_SS_WB/lecture-markets.pdf

http://www.google.com.ph/

Thank you for reading this blog:D♥

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