 What is the E-Marketplaces?  Functions of a Market  Form of E-marketplace  Types of E-Marketplaces  Components & Paticipants  What is Mechanisms of E-marketplaces  Differences between on-line & off-line market  Intermediaries in E-marketplaces  What is the Digital economy?  Porter’s competitive forces model  Impacts of EC on business processes and organizations

 Definition An e-marketplace is a virtual marketplace in which sellers and buyers exchange goods or services.

Matching of buyers & sellers Determination of product offerings Search Price discovery Facilitation of transactions LogisticsSettlementTrustCommunication Institutional infrastructure LegalRegulatory

Mechanism Intermediary SellerBuyer E-marketplace

 One of the major defferences between the marketplace and the marketspace is the possible digitization of product and services  Marketspace also can sell digital products.

E-marketplaces PrivatePublic

 Online markets owned by a single company; may be either sell-side and/or buy-side e-marketplaces. Private Sell-sideBuy-side

 Sell-side : A private e-marketplace in which one company sells either standard and/or customized products to qualified companies.(similar to a B2C storefront)  Buy-side : A private e-marketplace in which one company makes purchases from invited suppliers.

 B2B marketplaces, usually owned and/or managed by an independent third party.  They are open to the public and are regulated by the government or the exchange’s owners.  They include many sellers and many buyers.  They also are known as exchanges

 E-mall(online mall) – An online shopping center where many online stores are located.  Storefront – A single company’s Web site where products or services are sold.

 A single point of access through a Web browser to business information inside and/or outside an organization.

 Customers  Sellers  Products & services  Infrastructure  Front end  Back end  Intermediaries  Other business partners  Support services

 The portion of an e-seller’s business processes through which customers interact, including the seller’s portal, eletronic catalogs, a shopping cart, a search engine, and a payment gateway.

 The activities that support online order fulfillment, inventory management, purchasing from suppliers, payment processing, packaging, and delivery.

 The marketspace infrastructure includes electronic network, hardware, software, and more.

 A third party that operates between sellers and buyers.

 Mechanisms are necessaries that operatete an E-marketplaces and facilitate EC by providing a user-friendly shopping environment.  Catalogs(electronic, customized)  Search Engines and Intelligent Agents  Shopping Carts Influences On EC

ComparisonOn-lineOff-line Distribution Direct arrangement B2C Complex steps Trade rangeGlobal marketlimited Trade timeAnytimelimited Understanding demand of whole market Communication on real time each other Unable to communication on real time Marketing Importance of Interaction with customer Mass marketing A one sided marketing

Intermediary E-marketplaces Informediary Broker Distributor

 Electronic intermediaries that provide and/or control information flow in cyberspace, often aggregating information and selling it to others.  Ex) Amazon.com

 An e-commerce intermediary that connects manufacrurers with business buyers (customers) by aggregating the catalogs of many manufacturers in one place----the intermediary’s Web site.

 A digital economy is an economy that is based on electronic goods and services produced by an electronic business and traded through electronic commerce.

Rivalry among exising competitors Threat of substitute products or services Bargaining power of suppliers Barriers to entry “Buyers” Bargaining power of channels/end users

 Improving marketing and sales  Transforming organizations  Redefining organizations