Question- What are the categories of B2B e-commerce? Discuss supplier-oriented marketplace or e-distribution.

Related Short Answer Questions
What are the categories of B2B e-commerce? Discuss in detail.
Or
Indicate basic models in B2B? Explain supplier oriented marketplace.

Ans.

These are as under-

1. Supplier-oriented marketplace (e-distribution),
2. Buyer-oriented marketplace (e-procurement),
3. Intermediary-oriented marketplace (e-exchange)..

Supplier-oriented Marketplace
(eDistribution)

In this type of model, there are many buyers and few suppliers. The supplier provides a common marketplace. This market is used by both individual customers as well as businesses. For the success of this model, goodwill in the market and a group of loyal customers is very important. A supplier offers e-stores for sales promotion. The customers search e-mail sites to find and compare information on suppliers and products. The suppliers are able to focus on their most beneficial trading partners.

The supplier-oriented business model is successful as long as the e- marketplace has a sound reputation and loyal customers.

This model is very costly for firms which purchase thousands of items on the Internet. The option for such big buyers is to open their own electronic market on their server and invite potential suppliers to send information on the requested products.

Under this platform searching e-stores and e-mails to find suppliers and comparing suppliers and products is time-consuming. It can be costly to companies who purchase thousands of products on the internet.

The supplier-oriented marketplace model is not always officient for the large and repetitive business buyer, because the large buyer's information is stored on the suppliers' servers. Under this model the buyer's procurement department has to manually enter the order information into its own corporate information system.

A successful example of the supplier-oriented marketplace model is Cisco. Cisco owns an online marketplace which goes by the name of Cisco Connection Online. Cisco started its online business in 1991. It began by providing basic electronic support via the Internet. Cisco launched its website Cisco Connection. Online. Customers are using Cisco's website - accessed about one million times a month for technical assistance, to check orders, or to download software.

Cisco save several million US$ per year in distribution, packaging and duplication as customers downloaded new software updates directly from Cisco's website. Additionally, a lot of money is saved per year because there is no need for printing and distribution of catalog.

Catalog : Dell Inc., Intel, IBM etc. have successfully implemented the supplier-oriented busines model. Dell Inc. sold 90 percent of its computers to business buyers, and Cisco sold routers, switchers and other network interconnection devices mainly to business customers or industry buyers through their internet e-marketplace.

There are thousands of companies using supplier-oriented model. Excellent reputation and a group of loyal customers are necessary for the success of the sites using supplier-oriented model. Another application of this Marketplace is auction sites. Companies can sell surplus goods and business customers can receive large dicounts.

Characteristics of Supplier-oriented Marketplace : Following are the characteristics of supplier-oriented marketplace-

1. Offers a wide Spectrum of Products : Supplier-oriented Marketplace offers a group of customers a wide spectrum of products and, is supports them in their own business.

2. Net Types of Market Channels : Supplier-oriented Marketplace new types of market channels in marketing and distribution are offered to suppliers.

3. Large Potential : There are large potentials through customer communities, individualized products and direct customer-relationships.

4. Direct Sale : Products and services can be sold directly to customers without intermediaries.

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