Net marketplace

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