Electronic Marketplace
An electronic marketplace, also known as an E-marketplace, can be seen as a Website or a set of linked sites of common interest to specific types of participants. E-marketplace helps enterprises to do business in several ways, which are described below:
• It primarily transacts and. executes purchases on behalf of their participants. The main aim of these E-marketplaces is to improve purchase order efficiency and help customers by reducing complex, paper-based transactions between buyers and sellers.
• It helps customers when they face a large number of suppliers because it becomes difficult to reach these suppliers off-line or to contact them online. In this case, E-marketplaces usually provide the possibility of a parametric search across suppliers and in-depth product information. In this way, they help customers to make an effective cost-quality analysis and to choose a product, which suits them the best.
• It helps in buying and selling products that are available in low volume and for changing the product when it is in warranty. In this case, an E-marketplace usually organizes an on-line spot exchange for its members and helps to build market liquidity.
• It helps in the establishment of E-marketplaces that provide a platform for Collaborative (C)-commerce.
Functions of E-marketplace
Third-party E-marketplaces aim to achieve the right number and the right kind of participants for which they would provide a single venue for conducting business with different trade facilities.
• E-marketplaces are serving big industries such as electronics, chemicals, -medical and construction industries.
• Third-party E-marketplaces offer solutions to simplify the complexity of the construction industry processes. They also help in project management in an organization by providing workflow tools to get access to the most up-to-date information on the project regardless of their location.
• The other important function of a third-party E-marketplace is the Maintenance, Repair and Operations (MRO) of market supply. It helps in reducing the risk of trading with unknown partners since the buyers can view their relationships with the existing suppliers as a business strategic resource.
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