These global spaces for business, also known as e-markets or B2B Trade Communities, not only provide the possibility of connecting a large number of companies, clients and suppliers in a single meeting point, but also automatically link the entire chain of operations, from suppliers to the final consumer and are made up of different operators in a common activity, where purchase orders can be activated, products or excess stock offered, agreements established, specific offers or demands presented, etc.
However, for many of the gurus of the digital economy and the Internet, an e-marketplace must have a series of value-added services in order to be a successful business model, since at the end of the day it will not be enough to close a purchase order or a transaction through this business model. The ideal would be to have financial services, customer service, integrated logistics, etc. Therefore, not any site of this nature can be classified as an e-marketplace; there are conditions, characteristics and attributes that are inherent to it.
Some experts agree that an e-marketplace is a new business model that is not easy to implement and, for this reason, it has to meet a series of characteristics:
1. Simple tools. The e-market must have tools that are easy to use and meet the needs of customers.
2. A wide range of suppliers. It is important to provide a wide range of suppliers to maintain user or customer interest, provide added value with current content and have enough flexibility to be able to provide customized solutions for each business need.
3. Standardization of catalogs. It is necessary to have the technical and commercial capacity to define a "single language" based on a catalog of products and services that covers the entire market from end to end. Without this, the negotiating parties may understand the offers differently, generating inconsistencies that end in failed businesses. Therefore, the management of a catalog that unifies the criteria of definition, presentation, evaluation and quality of the products and services sold in the e-marketplace is a major requirement.
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4. Define the rules of the game. An e-marketplace, like a German Pineiro's Blogreal market, is a place where the rules of the game are defined, but it is not defined a priori how or under what conditions transactions will be closed. In fact, large transactions require complex negotiations and the results are far from the form "I sell this product at this price." Delivery conditions, payment, additional benefits, changes, exclusivity and many other elements are always at stake when negotiating. The e-marketplace must provide the tools for negotiations to cover all these characteristics in a flexible and reliable way.
5. Logistics. Once a deal is closed, the e-marketplace must contain the logistics tools for the deal to be carried out.
6. Ensure quality. The e-marketplace must have built-in and defined mechanisms to ensure quality of service. When a deal is closed, it must be clear how it will be decided what happens if one of the parties tries to undo it. It must also be defined what type of actions can be taken to validate the transaction or undo it.
7. Customer service. It is necessary to implement a customer service area that provides support to users, explains and teaches them how to use the different tools of the e-marketplace, as well as the operating rules, and allows the different participants to use the functionality.
8. A unique business model. An e-marketplace should be based on five main sources of income:
– Payment of user subscription fees.
– Charging a percentage on transactions carried out.
– Advertising revenue.
– Exploitation of information on web behavior.
-Income from additional services paid for (own) or from third parties (commissionable):
-Consulting.
-Management of access to credit and insurance.
-Website development and e-commerce services for companies.
-Logistics.
-Messaging.
To the extent that an e-market has these attributes, it will have the capacity to be dynamic and interactive, capable of exchanging critical business information and delivering real benefits. German Pineiro's Blog
E-marketplaces offer a large number of advantages:
1. Collaboration. Increasing collaboration between transaction stakeholders reduces cycle times, increases processing speed, and creates stronger relationships.
2. Better exposure. Sellers can showcase their products on a global scale 24 hours a day, seven days a week. Buyers will find it much easier to identify, qualify and measure the performance and capabilities of new suppliers. They can also get a more complete and personalized shopping experience.
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3. More opportunities for small businesses. E-marketplaces do not discriminate by size, but rather allow both small buyers and sellers to compete more effectively. In addition, e-marketplaces allow small businesses to benefit from the power of e-commerce without needing the large IT infrastructures that are required by some systems.
4. Integration. The supply chain is integrated and inventory is replaced by information.
However, Marketplaces also have some drawbacks that are worth highlighting:
1. Critical mass. It is necessary to create or reach a critical mass of both sellers and medium-high buyers.
2. Management. Managing a marketplace is a difficult and complex task.
3. Transaction diversion. Diverting or redirecting transactions to the marketplace is a slow process, as in many cases it involves changing the work habits of many people involved in the process.
For the BUYER it implies:
– Reduction of transaction costs, since the operation is direct between buyer and seller.
– Reduction of administrative burdens and indirect costs.
– Reduction in time, since you can find all the information in one place instead of searching for it scattered across the Internet and then visiting each provider’s website.
– Greater range of supply sources, whether from within the same country or abroad.
For the SUPPLIER it implies:
– An expansion of the database of potential clients, whether from within the country or abroad (internationalization).
– Reduction of time spent searching for these clients.
– Facilitate the first stage of contact with the potential client.
– Increased loyalty among existing customers.
– Lower transaction costs.
– Increase of its power through possible alliances.
For its part, the e-marketplace must have tools cyprus consumer mobile number list that are easy to use and that meet the needs of customers. Once it has achieved an interesting critical mass of users, it will be in a better position to act as a purchasing agent, having greater negotiating power with suppliers, thus achieving, on the one hand, their participation and cooperation, and on the other, a significant reduction in prices.
It is important to provide a wide range of providers to maintain user or customer interest, add value with current content, and have enough flexibility to provide customized solutions for each business need. Considering that there are more than 3,000 e-marketplaces on the web, it would be interesting to analyze as a strategy the possibility of avoiding the charging of commissions (generally 2% to 5%) on transactions (as others are already doing) and generating income from the additional services provided.
