LlecLronlc MarkeLplaces

W Markets p|ay a centra|

ro|e |n the economy
fac|||tat|ng the
exchange of
|nformat|on
goods
serv|ces
payments
W Markets create
econom|c va|ue for
buyers
se||ers
market |ntermed|ar|es
soc|ety at |arge
|ectron|c Marketp|aces
W In recent years markets have seen a
dramat|c |ncrease |n the use of I1
has
|ncreased market eff|c|enc|es by exped|t|ng
or |mprov|ng funct|ons
been ab|e to s|gn|f|cant|y decrease the cost
of execut|ng these funct|ons
MarkeLspace
W Marketspace A marketp|ace |n wh|ch
se||ers and buyers exchange goods and
serv|ces for money (or for other goods
and serv|ces) but do so e|ectron|ca||y
MarkeLspace ComponenLs
W ustomers
W Se||ers
W roducts
W Infrastructure
W Iront end
W 8ack end
W Intermed|ar|es
W Cther bus|ness
partners
W Support serv|ces
MarkeLspace ComponenLs (conL)
W |g|ta| products
Goods that can
be transformed
to d|g|ta| format
and de||vered
over the
Internet
W Iront end 1he port|on of
an
ese||er's bus|ness
processes through wh|ch
customers |nteract
|nc|ud|ng the se||er's porta|
e|ectron|c cata|ogs a
shopp|ng cart a search
eng|ne and a payment
gateway
MarkeLspace ComponenLs (conL)
W 8ack end 1he act|v|t|es that
support on||ne ordertak|ng
It |nc|udes fu|f|||ment
|nventory management
purchas|ng from supp||ers
payment process|ng
packag|ng and de||very
W Intermed|ary
A th|rd party
that operates
between
se||ers and
buyers
@pes of LlecLronlc MarkeLs
W |ectron|c storefront A s|ng|e or company Web
s|te where products and serv|ces are so|d
W Mechan|sms necessary for conduct|ng the sa|e
e|ectron|c cata|ogs
search eng|ne
eauct|on fac|||t|es
payment gateway
sh|pment court
customer serv|ces
@pes of LlecLronlc MarkeLs (conL)
W ema|| (on||ne ma||) An on||ne shopp|ng
center where many stores are |ocated
some are mere|y d|rector|es
some prov|de shared serv|ces (eg
cho|cema||com)
some are actua||y |arge c||ckandmortar
reta||ers
some are v|rtua| reta||ers (eg buycom)
@pes of LlecLronlc MarkeLs (conL)
W 1ypes of stores and ma||s
Genera| stores]ma||s
Spec|a||zed stores]ma||s
keg|ona| versus g|oba| stores
ure on||ne organ|zat|ons versus c||ckand
mortar stores
@pes of LlecLronlc MarkeLs (conL)
W emarketp|ace
An on||ne market usua||y 828 |n wh|ch buyers
and se||ers exchange goods or serv|ces the
three types of emarketp|aces are pr|vate
pub||c and consort|a
W r|vate emarketp|aces
Cn||ne markets owned by a s|ng|e company can
be e|ther se||s|de or buys|de marketp|aces
W Se||s|de emarketp|ace
A pr|vate emarket |n wh|ch a company se||s
e|ther standard or custom|zed products to
qua||f|ed compan|es
@pes of LlecLronlc MarkeLs (conL)
W 8uys|de emarketp|ace
A pr|vate emarket |n wh|ch a company makes
purchases from |nv|ted supp||ers
W ub||c emarketp|aces
828 markets usua||y owned and]or managed by
an |ndependent th|rd party that |nc|ude many
se||ers and many buyers a|so known as
exchonqes
W onsort|a
marketp|aces owned by a sma|| group of |arge
vendors usua||y |n a s|ng|e |ndustry
Intermed|at|on and Synd|cat|on |n ommerce
W Intermed|ar|es (brokers) prov|de va|ue
added act|v|t|es and serv|ces to buyers
and se||ers
W Intermed|ar|es |n the phys|ca| wor|d are
who|esa|ers and reta||ers
W Infomed|ar|es
e|ectron|c |ntermed|ar|es that contro|
|nformat|on f|ow |n cyberspace often
aggregat|ng |nformat|on and se|||ng |t to
others
nLermedlaLlon and SndlcaLlon ln
LCommerce (conL)
W ko|es and va|ue of
|ntermed|ar|es |n
emarkets
Search costs
Lack of pr|vacy
Incomp|ete |nformat|on
ontract r|sk
r|c|ng |neff|c|enc|es
nLermedlaLlon and SndlcaLlon ln LCommerce
W d|str|butors |n 828
ed|str|butor
An ecommerce |ntermed|ary that connects
manufacturers (supp||ers) w|th buyers by
aggregat|ng the cata|ogs of many supp||ers |n
one p|acethe |ntermed|ary's Web s|te
Ma|ntenance repa|r and operat|on |tems
(MkCs)
kout|ne |tems that are usua||y not under
regu|ar contract w|th supp||ers
nLermedlaLlon and SndlcaLlon ln L
Commerce (conL)
W |s|ntermed|at|on and
re|ntermed|at|on
|s|ntermed|at|on
||m|nat|on of |ntermed|ar|es between
se||ers and buyers
ke|ntermed|at|on
stab||shment of new |ntermed|ary ro|es
for trad|t|ona| |ntermed|ar|es that were
d|s|ntermed|ated
nLermedlaLlon and Synd|cat|on
W Synd|cat|on as an mechan|sm
Synd|cat|on
1he sa|e of the same good (eg d|g|ta| content)
to many customers who then |ntegrate |t w|th
other offer|ngs and rese|| |t or g|ve |t away free
|ectron|c ata|ogs
W |ectron|c cata|ogs
1he presentat|on of product |nformat|on |n an
e|ectron|c form the backbone of most ese|||ng s|tes
W |ectron|c cata|ogs can be c|ass|f|ed by the
fo||ow|ng d|mens|ons
1 1he dynam|cs of the |nformat|on
presentat|on(dynam|c |nc|udes mot|on sound)
2 1he degree of custom|zat|on(ta||ored to spec|f|c
customer character|st|cs)
3 Integrat|on w|th bus|ness processes(eg order at
amazon |s transferred automat|ca||y to |nventory
check process)
Search eng|ne
A computer program that can
access a database of Internet
resources search for spec|f|c
|nformat|on or keywords and
report the resu|ts
Auct|ons
W Auct|on
A market mechan|sm by wh|ch a se||er p|aces an
offer to se|| a product and buyers make b|ds
sequent|a||y and compet|t|ve|y unt|| a f|na| pr|ce
|s reached
W Auct|ons can be done
on||ne
off||ne
at pub||c s|tes (e8ay)
at pr|vate s|tes (by |nv|tat|on)
cLlons as LC MarkeL Mechanlsms (conL)
W |ectron|c auct|ons (eauct|ons)
cLlons condcLed onllne
W ost s|tes on the Internet serve as brokers
offer|ng serv|ces for se||ers to post the|r
goods for sa|e and a||ow|ng buyers to b|d on
those |tems
W onvent|ona| bus|ness pract|ces that
trad|t|ona||y have re||ed on contracts and
f|xed pr|ces are |ncreas|ng|y be|ng converted
|nto auct|ons w|th b|dd|ng for on||ne
procurements
Auct|ons AkA1kIS1IS
1 Cne buyer one se||er(use
negot|at|onsbarga|n|ng or barter|ng)
Cne se||er many potent|a| buyers
Iorward auct|ons used for fast ||qu|dat|on
and as a se|||ng channe| r|ce |s |ncreas|ng
the h|ghest b|dder w|ns(-GLIS ankee
auct|on)
Iorward auct|on An auct|on |n wh|ch a se||er
enterta|ns b|ds from buyers
cLlons as LC MarkeL Mechanlsms (conL)
W Cne buyer many potent|a| supp||ers
keverse auct|on (b|dd|ng or tender|ng
system)
Auct|on |n wh|ch the buyer p|aces an |tem
for b|d (ender) on a request for quote
(kI) system potent|a| supp||ers b|d on
the [ob w|th pr|ce reduc|ng sequent|a||y
and the |owest b|d w|ns pr|mar||y a 828
or G28 mechan|sm
cLlons as LC MarkeL Mechanlsms (conL)
3 Cne buyer many potent|a| se||ers
(spec|a| mode|)
"nameyourownpr|ce" mode|
Auct|on mode| |n wh|ch a wou|dbe
buyer spec|f|es the pr|ce (and other
terms) they are w||||ng to pay to any
w||||ng and ab|e se||er It |s a 28
mode| p|oneered by r|ce||necom
cLlons as LC MarkeL Mechanlsms (conL)
Many se||ers many buyers
oub|e auct|on
Auct|ons |n wh|ch mu|t|p|e buyers
and the|r b|dd|ng pr|ces are
matched w|th mu|t|p|e se||ers and
the|r ask|ng pr|ces cons|der|ng the
quant|t|es on both s|des
eneflLs of LcLlons
L|m|tat|ons of Auct|ons (conL)
W L|m|tat|ons of eauct|ons
Lack of secur|ty(unencrypted env|ronment)
oss|b|||ty of fraud(un|que |tems cou|d be
defect|ve)
L|m|ted part|c|pat|on(|sadvantage to
se||ers)
W Impacts of auct|ons
Auct|ons as a coord|nat|on mechan|sm
Auct|ons as a h|gh|y v|s|b|e d|str|but|on
mechan|sm
Auct|ons as a component |n ecommerce
lmlLaLlons of LcLlons (conL)
W Impacts of auct|ons
Auct|ons as a coord|nat|on
mechan|sm(to get an equ|||br|um |n
pr|ce egbandw|dth a||ocat|on)
Auct|ons as a h|gh|y v|s|b|e
d|str|but|on mechan|sm(ant|que
|tems attract op|n|on of experts and a
pr|ce |s estab||shed eg a|r||ne seats)
8arter|ng Cn||ne
W 8arter|ng
An exchange of goods and serv|ces
W ebarter|ng
8arter|ng conducted on||ne usua||y
by a barter|ng exchange
W 8arter|ng exchange
A marketp|ace |n wh|ch an
|ntermed|ary arranges barter
transact|ons
-egoLlaLlng Cnllne
W -egot|ated pr|c|ng used for
expens|ve or spec|a||zed products
W -egot|ated pr|ces are popu|ar when
|arge quant|t|es are purchased
W kesu|t from |nteract|ons and
barga|n|ng among se||ers and buyers
-egoLlaLlng Cnllne (conL)
W ea|s w|th nonpr|c|ng terms
such as payment method and
cred|t
W |g|ta| products and serv|ces can
be persona||zed and "bund|ed"
at a negot|ated standard pr|ce
Mommerce
W Mob||e comput|ng
erm|ts rea|t|me access to |nformat|on
app||cat|ons and too|s that unt|| recent|y were
access|b|e on|y from a desktop computer
W Mob||e commerce (mcommerce)
commerce conducted v|a w|re|ess dev|ces
W mbus|ness
1he broadest def|n|t|on of mcommerce |n
wh|ch ebus|ness |s conducted |n a w|re|ess
env|ronment
W ro|e of mcommerce
Mob|||ty s|gn|f|cant|y changes the
manner |n wh|ch peop|e and trad|ng
partners |nteract commun|cate and
co||aborate
Mob||e app||cat|ons are expected to
change the way we ||ve p|ay and do
bus|ness
Much of the Internet cu|ture may
change to one based on mob||e dev|ces
Mcommerce creates new bus|ness
mode|s for notab|y |ocat|onbased
app||cat|ons