Market PlaceNet Marketplace (also referred as exchanges or hubs)It brings thousands of sellers and buyers into a single

digital market place operated over the internetPrivate industrial networksIt 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

Pure Types Of Net market PlaceE-Distributor

E-Procurement

Exchanges

Consortia

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E-DistributorsE-Distributors provides electronic catalogs that

represent the products of thousands of manufacturers

Source Of Indirect goodsServe horizontal markets using spot purchasingEg staples.com

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E-ProcurementE-Procurement are independently owned

intermediaries connecting hundreds of online suppliers

Source of indirect goods and serve horizontal market using contractual purchasing

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ExchangesExchanges 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 telecommunicationsIt makes money by charging commissionsIt reduces search cost Also reduces the price of the product due to

increase in competitionEr.Sartaj Singh Bajwa

ConsortiaIndustry 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

KEY TERMSMarket is liquid when you can buy or sell

just about any size order at just about any time you want

Er.Sartaj Singh Bajwa