e marketplaces
- This is a preview of the essay.
To view the full text you must login!
1. Definition of E-marketplace.
Defining a B2B eMarketplace
There are many definitions used to define what an e-marketplace actually is. eMarket Services uses the following:
It is a business-to-business e-marketplace if it
is open to several buyers and several sellers
has a focus on business to business or business to government
is a trading platform, where the e-marketplace itself does not sell nor buy goods or services traded on the platform
has at least one trading function
It is not an e-marketplace if
they only offer information, like an industry directory or community, without trading function
it is a website of one company, selling their own products
if it is one seller acting as distributor, selling other companies products
if they mainly focus on trade to or between consumers
if it only is a provider of e-commerce solutions
Trading Functions
In order to be defined as an eMarket, at least one of the following trading functions has to exist at the eMarket:
Auction
Reverse Auction
Bulletin Board
Exchange (RFQ/RFP/RFB)
Catalogue
Catalogue with online order
Commodity Exchange
Fixed price / Time Limited
2.How do e-marketplaces earn money?
Most e-marketplaces earn their revenue with various fees. The fees charged usually vary with the type of user (seller or buyer) and the extent of usage. Transaction fees are sometimes only charged to the seller or the buyer - and in some cases, both. The main revenue sources are:
Membership fee
Percentage of the value of the transaction
Flat fee per completed transaction
Fee for hosting a company's product catalogue
Fees for further exposure over and above basic product information
Advertisement (banners and links)
Leasing or sale of software for e-commerce
Sale of industry information compiled
Additional services like logistics and financial services
Consulting fees
Initially analysts believed that transaction fees would be the main revenue model. Now a membership fee appears to be most commonly used...