MAJOR MODELS OF B2B E-COMMERCE

Reporter:Ms. Julanie Salo

Buyer-side Marketplace

• A buyer or a group of buyers, opens an electronic marketplace & invites sellers to bid on announced product or request for quotation.

• Using this model, buyers can manage the procurement process more effectively, lower administrative costs, and implement uniform pricing.

By participating in buyer-side marketplace, sellers could do the ff:

• Conduct sales transaction• Automate the order management process• Conduct post sales analysis• Automate the fulfillment function• Improve understanding of buying behaviors• Provide an alternative sales channel• Reduce order placement and delivery time

Third-party Exchange Marketplace

This model isn’t controlled by sellers or buyers, instead it is controlled by a third party and the marketplace generates revenue from the fees charged for matching buyers and sellers.

These marketplaces are usually active in vertical or horizontal markets

Vertical Market- concentrates on a specific industry or market.

Horizontal Market- concentrates on a specific function or business process and automates this function or process for different industries.

Trading Partner Agreements

-Automate negotiating process and enforce contracts between participating businesses.

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