E - Commerce A Report On Business to Business Exchanges

Submitted by:

Deepali Pandit

Shivam Kharwal

BFT – V

Assignment - 2

EXECUTIVE SUMMARY

The Internet is transforming and reshaping the nature of inter-organizational commerce by enabling many new types of inter-firm electronic exchanges. A B2B exchange is defined as a new organizational form residing in digital space that acts as an inter-firm intermediary that enables firms to conduct and engage in any-to-any online relations. Intense competition in electronic markets and the growing number of web-based B2B marketplaces have made inter-organizational E-Commerce important and challenging. The notion of B2B E- Commerce is not new, but its scale and scope has proliferated with the advent of B2B exchanges, which provide a facilitating structure for virtual relationships by enabling an easier identification and selection of suppliers and products, lower transaction costs, and more integrated supply-chain management compared to traditional channels. An important application of B2B E-Commerce has been the inter-organizational information system (IOIS) through which multiple firms interact online to identify and select trading partners, negotiate, and execute business transactions. This project will help in increasing the understanding of the range of B2B e‐commerce exchanges available, and how companies utilize B2B exchanges.

INTRODUCTION

B2B exchanges are online marketplaces for businesses to buy and sell goods and services from other businesses. For example, General Electric’s Aircraft Engines division had a system with which a customer could order a part, initiate the shipping process, be invoiced, and pay for the part, all without a single piece of paper and within a span of 45 minutes. However, these systems needed dedicated, expensive data communication facilities and required significant investments in large, complex software to be developed from the ground up before they even started working. The Internet brought down the cost and technological barriers. B2B transactions typically involve long, complex processes including searching for vendors, requests for quotation, evaluating different proposals, negotiation, supply chain planning, shared product design, document exchange, billing, payment, and extensive data analysis. As a result, B2B exchanges can go far beyond simply streamlining buying and selling. They can create customer-driven value chains that substantially reduce costs for both buyer and seller and better align the entire supply chain with the customer’s needs.

TYPES OF B2B EXCHANGES

B2B exchanges can generally be divided into three basic categories on the basis of intermediaries:

Consortia Consortia are B2B exchanges that attempt to provide a technological and organizational platform to enable interaction among firms within an existing association or network. Consortia are typically formed by a group of leading vendors in a particular industry, like Global Food Exchange.

Proprietary exchanges Private marketplaces are run by a single company and its key suppliers, such as those sponsored by Wal-Mart and Dell.

Third-party exchanges Public exchanges such as Commerce one are run by a third party, and are open to all companies that meet the standards defined by the exchange.

B2B exchanges can generally be divided into two basic categories on the basis of participants:

Direct exchanges

Direct involve buyer/seller interaction

Indirect exchanges

Indirect involve intermediaries (e.g., e-hubs)

TRADEINDIA.COM

TradeIndia is an online Business to Business (B2B) portal for small businesses based in

India and around the globe. The portal was started in 1996 by Bikky Khosla and is

maintained and promoted under the flagship company, Infocom Network Ltd. The company

is headquartered in New Delhi, India, and has branch offices in 35 cities across India. It

employs over 1200 professionals.

The company has published Exporters Yellow Pages since 1990 and in 1996 started the web

portal tradeindia.com to provide online directory services to the global export-

import community.

The initial investment of $1.7 million was made in Infocom Network Ltd. in 2001 by Vinod

Khosla, an Indian-born California-based venture capitalist and elder brother of Bikky Khosla.

The portal provides information about Indian and global sellers and buyers with over 1,200

product categories and sub-categories. The main products and services offered by the portal

include online business catalogs, DialB2B, Trade Alerts, Call Me Free Service, credit

reports and trade leads. The portal has a separate section on trade shows and the company

regularly participates in global and domestic trade shows. The portal also has a special

mobile-optimized version for mobile phone users.

In 2009, the company launched two vertical portals to cater to the business requirements

of SMEs – one a news-based portal called sometimes and the other a separate

section showcasing suppliers from China. The portal claims to be the first Indian B2B portal

to have more than 2 million registered users, of which 1.3 million are SMEs.

The portal offers an Indianised Domain Name Booking service developed by VeriSign.

EVENTS ORGANISED

Emerging India Awards

Workshop on effective use of internet for the growth of business

2nd Food & Agri Exporters Conclave

SME Conclave

PARTNERSHIP

In April 2013, the company has signed a Memorandum of Understanding (MoU) with the

Department of International Trade Promotion (DITP) of the Ministry of Commerce of

Thailand, to boost Indo-Thai bilateral trade. TradeIndia is also associated with Google as

their premier SME partner. Previously, TradeIndia had signed a Memorandum of

Understanding with the Korea International Trade Association (KITA) to promote SMEs and

partnered with Global Sources in organizing the Machinery & Industrial Supplies Fair.

Tradeindia is preserved and promoted by Infomercial web Ltd an ISO 9001 2000 certifiable

companionship started its trading operations in the twelvemonth 1990 and conceptualized

Tradeindia in 1996 and net took off in India.

Fellowship has created a recess for itself as India's largest B2B mart offer comprehensive concern solutions to the planetary EXIM community of interests through its blanket enclothe of online services book of facts services and facilitation of trade content events.

Buyers and Sellers founded an ideal meeting place across the world for interaction and to conduct business concern smoothly and effectively via the path way of tradeindia.

Also enormous number of membership plans that suit our diverse business requirements in heterogeneous arenas are offered by tradeindia. One can now choose any of the plan/plans related to their area of centering which assists to decide and buy the right products/services for our concern business involving risks. Service yourself of the different product and service packages of this section and give your company a cutting edge over your rivals, challengers ,competitors, contenders, viz.

FEATURED PRODUCTS

Electronic ballasts Rotomoulding machine Hot rolling mills Plastic extrusion machinery 100% Herbal hair growth product Substation towel

And many subcategories.

BUSINESS MODEL

Tradeindia has decided to stick not to take complex model but want to stick with simple model which take the offline yellow pages model online. Sales are attained from list fees of anywhere range between Rs 3,000 to 13, 000 per anum.

However, until 2003, factors so much as the dotcom flop and the US recess hit home hard. They had to take losses for two consecutive years, but since business model built not on ideas, it built with utility, so they were confident to survive again.

The big invigorating had come post 2003, when the Indian economic system gained

momentum and certain changes forced to become observable in the SME market. Second-generation SME pluggers began to return charge of businesses, and due to better cognizance

of the Internet, online sourcing began to gain ground. Since then, gross maturation has been 50% year-on-year.

A newfangled and authoritative service has been set in motion by Tradeindia, DIALB2B. With internet playing a key role in flinching global edges by getting in touch with the world on a flick of a mouse, Tradeindia now has aggregated power of the net with that of a simple telephone call to help find useful B2B specific information with furthermost ease.

Overall B2B is trying to attract foreign users as various models evolve and co-exist. Alibaba, China's leading B2B commercialism company has just announced a partnership with

Mumbai-based yellow pages services company, Infomedia India which is based on multiyear strategy.

Alibaba's entry has invoked Tradeindia to expand their plans this year. Competition keeps us on our toes so it considered as good and inspired you to come with new things. The glad news is that for Tradeindia and third-group market hub are coming up value chain, venture capital money has finally started smelling the Business to business chances in India.

A big basic of mercantilism trading operations for bourgeoisies, businesspersons, and manufacturers across the globe to advertise their products and employment online is provided by Tradeindia. The consumers and trading houses can perspective your information and can directly do email you regarding business related queries. More than

7, 48,551 producers and exporters are already availing this service. The DB (database) on the site gets regularly updated according to the latest developments to provide relevant results.

REVENUE MODEL

Tradeindia account for $15-20 billion of transactions of a total $100 Billion online B2B business. TradeIndia.com is apparently the India's largest B2B marketplace, with a claim of over 700,000 registered users. The list for these marketplaces scope between Rs. 3000-13000 per year. No source for this information has been given. Revenues are expected to be double upcoming year, and company growth is 35% of year by year.

It is no coincidence that India's B2B will be set transaction volumes to $100 billion when trade market will be shifting gears in a year when. Much of this is trade between fellowships

facilitated by their own closed exploiter networks. But a cluster of enterprisers, who have promoted independent online marketplaces, including Tradeindia, Indiamart, Matexnet and Auction India, is already in control about $15-20 billion.

Tradeindia.com is well developed on all search engines and receives an avg. of 135 lakhs page views every month. With the quality offerings Tradeindia has on offer that today as per estimates the organisation is contributing over US$ 3.5 billion of business to India's international trade.

Conquering mastery in acquiring, maintaining quality database and offering appropriate to the current matter online promotions, Tradeindia serves quality results for users while they

use tradeindia.com to figure out to companies for their relavent interests who projects their intelligence creations in product catalogs, under 1522 various product categories and sub categories involved.

DIALB2B will provide its consumers to find the whole information of suppliers of their choice through messages on mobiles. No requirement for internet. Just call up and get the right information on your B2B suppliers delivered to you on your phone as SMS or as an email in your mail box. This is tradeindia's new proposals towards helping buyers and SMEs able to save time on finding for the information required.

Mr. Khosla says that, all services which tradeindia.com sets in motion are projected based on smooth flow of information conveniently and as per required for users everywhere during the working time.

Tradeindia.com has launched SME Times for buyers and dealers overall the world and is probably one of the wellspring Business to business websites in India has. We can access news site from http://smetimes.tradeindia.com. This is very reliable to its user from which they can get information regarding over the business world.

MARKET STRATEGY

Their merchandise and marketplace strategy focuses on reviewing the customer's product and market case with a view to help them grow and maximise profit.

They provide a platform for their clients to plan and maturate rapidly through surveying the opportunity around new products and markets. The judgement involves careful study of the opportunity available, factors involving risk, integrated and focused projects plan, competition in the market, strategies involving a better marketplace. Their scheme testimonials provide not only a brainstorm into the sizing and nature of the opportunity but also spell out how the opportunity should be addressed.

They also help our clients heighten their profits done our merchandise and marketplace case

optimisation offerings. By analysing the profitability of products and markets in the case, they assist their clients in identifying the products that are destroying value and also those that are contributing the most and hence need to be protected.

MAIN RIVALS

Alibaba.com

Indiamart.com

Indiamarkets.com

ADVANTAGES

1. Tradeindia is online trading, so it can be easy for busy consumers by getting their trading

information through SMS by the introducing new technology B2B.

2. The exhibitor can display a wide variety of services and products.

3. Buyers have wide variety of choices as they required.

4. One can meet large number of prospective buyers in a brief duration of time.

5. Company has massive cost- benefits as they spread over the world.

6. It is the best platform for buyers and dealers to spread their network over the globe.

7. It provides opportunity to figure out proximity which is closed, the USP of the rival's

products, and their selling strategies.

8. If any mistakes can be done by rivals, then we have opportunity to learn from it.

RECOMMENDATIONS

In this new world of convenient buying and placing orders, online alternatives such as

business to business exchanges are frequently practiced these days by distinct foreign

buyers. The practice is latest and quite new thus it needs and have a scope of further

improvements for online transaction and this will encourage and promote this type of online

buying.

So there are some recommendations for the buying houses or any buyer so as to choose the

right vendor or suppliers online by studying certain features of the site that they visit.

A quality product is the ultimate demand of any of the buyer i.e. the product should have

value for money and for assuring this the sites or the manufacturer should provide the

facility of providing the sample of the product for further approval and order placement.

This process will facilitate the buyer to have a clear idea of the product quality which they

are likely to get.

Costing or Price quoted for any of the products is one of the deciding criteria for placing

the order so the buyer should do the market research in order to get the best possible

price without compromising in quality.

The interface of the site should be simple, clear and easily understandable yet attractive

so as to make the accessibility of any user easy. The interface of the site should be in such

a way that the buyer reaches to its desired destination with minimum effort i.e. the site

should have clearly mentioned tab and required highlighted options available.

The terms and conditions and privacy policies of the site and the manufacturers should

be clearly available and properly mentioned in the site itself so as to facilitate a

transparent working without any of the hidden trap and conditions.

Tracking order facility should be present in the site and should be available online.

The shipment, if ready then should be delivered on time that was decided earlier.

Return policy is always available in B2B exchanges, so the return policies should be

reasonable and acceptable by the buyer so as to give a balanced power to both the parties.

CONCLUSION

Business-to-business (B2B) describes trading transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer.

Tradeindia is B2B model. Tradeindia provide platform to the users to establish a network over the world. As they will have launched DIALB2B, users can find their suppliers details of their choice through SMS.

Tardeindia have in process to spread in the world with efficient status getting by their consumers. It is most popular business to business marketplace in India or may be will in the world by watching its rapid development.

L&T, aaditya birla group etc are major firm also use Tradeindia site for their online trade.