Question- Discuss intermediary-oriented B2B e-commerce model.

Ans.

Intermediary-oriented B2B
E-commerce Model

Intermediary Oriented Marketplace (eExchange) is a type of model, in which there are many buyers and many suppliers. An intermediary company runs a marketplace where business buyers and sellers meet and do business with each other. In this model an electronic intermediary is established. The Business buyers and sellers meet on the intermediary's site. It is similar to intermediary based e-mails in the B2b.

Characteristics of Intermediary-
oriented B2B E-commerce Model

These are as under-

1. An Indifferent Platform : The Intermediary-Oriented B2B e- commerce model is a neutral business platform. It offers the classical economic functions of a usual market. The participants do not have to be physically present.

2. Horizontal and Vertical Marketplaces : There are two types of Intermediary-Oriented Marketplaces (i) horizontal, and (ii) vertical marketplaces. Vertical marketplaces concentrate on one industrial sector. Horizontal marketplaces offer services to all industrial sectors.

3. Establishment by an Intermediary Firm : Intermediary-oriented business model is established by an intermediary company which runs a marketplace where business buyers and sellers can meet.

4. Virtual Catalog : Intermediary-oriented marketplaces contain a "virtual catalogue of the industrial sector". Companies have the possibility to present themselves in virtual catalog. On an Internet based "notice board" single offers or requests of companies are found.

5. Large Numbers : There are thousands of Intermediary-Oriented Marketplaces. Many of them are very different in the services they offer.

Alibaba is the best example of an intermediary-oriented marketplace. It is the giant player in this space. Alibaba started in 1999 when the founder created Alibaba.com, a business-to-business portal to connect many Chinese manufacturers with many overseas buyers. In 2012 alone, two of Alibaba portals handled $170 billion in sales. Alibaba's online sales and profits surpassed all US retailers, including Walmart, Amazon, and eBay combined.

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