Net marketplace

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  • 1. Market Place
    • Net Marketplace (also referred as exchanges or hubs)
    • It brings thousands of sellers and buyers into a single digital market place operated over the internet
    • Private industrial networks
    • It brings together a small number of strategic business partner firms that collaborate to develop highly efficient supply chains
    • Largest form of B2B ecommerce
    Er.Sartaj Singh Bajwa
  • 2. Pure Types Of Net market Place
    • E-Distributor
    • E-Procurement
    • Exchanges
    • Consortia
    Er.Sartaj Singh Bajwa
  • 3. E-Distributors
    • E-Distributors provides electronic catalogs that represent the products of thousands of manufacturers
    • Source Of Indirect goods
    • Serve horizontal markets using spot purchasing
    • Eg staples.com
    Er.Sartaj Singh Bajwa
  • 4. E-Procurement
    • E-Procurement are independently owned intermediaries connecting hundreds of online suppliers
    • Source of indirect goods and serve horizontal market using contractual purchasing
    Er.Sartaj Singh Bajwa
  • 5. Exchanges
    • Exchanges are independently owned online marketplace that connect hundred of suppliers to potentially thousands of buyers
    • Exchanges create vertical markets focusing on the spot purchasing requirements of a large firm
    • Eg computers and telecommunications
    • It makes money by charging commissions
    • It reduces search cost
    • Also reduces the price of the product due to increase in competition
    Er.Sartaj Singh Bajwa
  • 6. Consortia
    • Industry owned vertical markets that enable buyers to purchase direct inputs from a limited set of invited participants
    • It emphasizes on long term contractual purchasing
    • These are more focused on optimizing supply chain relationships
    • It generates revenue by charging subscription and transaction fees
    • Also Industry members pay for the creation of the site
    Er.Sartaj Singh Bajwa
  • 7. KEY TERMS
    • Market is liquid when you can buy or sell just about any size order at just about any time you want
    Er.Sartaj Singh Bajwa