Chapter 2 E-Marketplaces Structures, Mechanisms EconomicS, and Impacts
Chapter 2 E-Marketplaces: Structures, Mechanisms, Economics, and Impacts
Learning objectives Define e-marketplaces and list their components 2. List the major types of e-marketplaces and describe their features 3. Describe the various types of EC intermediaries and their roles 4. Describe electronic catalogs, shopping carts, and search engInes 5. Describe the various types of auctions and list their characteristics 6. Discuss the benefits limitations, and impacts of auctions Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 2 Learning Objectives 1. Define e-marketplaces and list their components. 2. List the major types of e-marketplaces and describe their features. 3. Describe the various types of EC intermediaries and their roles. 4. Describe electronic catalogs, shopping carts, and search engines. 5. Describe the various types of auctions and list their characteristics. 6. Discuss the benefits, limitations, and impacts of auctions
Learning objectives 7. Describe bartering and negotiating online 8. Define m-commerce and explain its role as a market mechanism 9. Discuss liquidity, quality, and success factors in e-marketplaces 10. Describe the economic impact of ec 11. Discuss competition in the digital economy 12. Describe the impact of e-marketplaces on organizations Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 3 Learning Objectives 7. Describe bartering and negotiating online. 8. Define m-commerce and explain its role as a market mechanism. 9. Discuss liquidity, quality, and success factors in e-marketplaces. 10. Describe the economic impact of EC. 11. Discuss competition in the digital economy. 12. Describe the impact of e-marketplaces on organizations
E-Marketplaces Markets(electronic or otherwise)have three main functions 1. Matching buyers and sellers 2. Facilitating the exchange of information, goods services, and payments associated with market transactions and 3. Providing an institutional infrastructure, such as a legal and regulatory framework, which enables the efficient functioning of the market Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 4 E-Marketplaces • Markets (electronic or otherwise) have three main functions: 1. Matching buyers and sellers; 2. Facilitating the exchange of information, goods, services, and payments associated with market transactions; and 3. Providing an institutional infrastructure, such as a legal and regulatory framework, which enables the efficient functioning of the market
E-Marketplaces Electronic marketplaces (e-marketplaces or marketspaces), changed several of the processes used in trading and supply chains Greater information richness Lower information search costs for buyers Diminished information asymmetry between sellers and buyers Greater temporal separation between time of purchase and time of possession Greater temporal proximity between time of purchase and time of possession Ability of buyers and sellers to be in different locations Electronic Commerc Prentice Hall 2006 5
Electronic Commerce Prentice Hall © 2006 5 E-Marketplaces • Electronic marketplaces (e-marketplaces or marketspaces), changed several of the processes used in trading and supply chains – Greater information richness – Lower information search costs for buyers – Diminished information asymmetry between sellers and buyers – Greater temporal separation between time of purchase and time of possession – Greater temporal proximity between time of purchase and time of possession – Ability of buyers and sellers to be in different locations
E-Marketplaces marketspace A marketplace in which sellers and buyers exchange goods and services for money(or for other goods and services), but do so electronically Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 6 E-Marketplaces marketspace A marketplace in which sellers and buyers exchange goods and services for money (or for other goods and services), but do so electronically
E-Marketplaces Marketspace components Customers Sellers Products and services digital products Goods that can be transformed into digital format and delivered over the Internet Infrastructure Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 7 E-Marketplaces • Marketspace components – Customers – Sellers – Products and services digital products Goods that can be transformed into digital format and delivered over the Internet – Infrastructure
E-Marketplaces Marketspace components front end The portion of an e-seller's business processes through which customers interact, including the sellers portal, electronic catalogs, a shopping cart, a search engine, and a payment gateway back end The activities that support online order-taking. It includes fulfillment, inventory management purchasing from suppliers, payment processing packaging, and delivery Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 8 E-Marketplaces • Marketspace components front end The portion of an e-seller’s business processes through which customers interact, including the seller’s portal, electronic catalogs, a shopping cart, a search engine, and a payment gateway back end The activities that support online order-taking. It includes fulfillment, inventory management, purchasing from suppliers, payment processing, packaging, and delivery
E-Marketplaces Marketspace components intermediary a third party that operates between sellers and buyers other business partners Support services Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 9 E-Marketplaces • Marketspace components intermediary A third party that operates between sellers and buyers. – Other business partners – Support services
Types of E-Marketplaces From storefronts to portals Electronic Storefronts storefront A single company' s Web site where products or services are sold Most common mechanisms are a(n) electronIc catalog search engine electronic cart e-auction facilities payment gateway Electronic Commerce Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 10 Types of E-Marketplaces: From Storefronts to Portals • Electronic Storefronts storefront A single company’s Web site where products or services are sold • Most common mechanisms are a(n): – electronic catalog – search engine – electronic cart – e-auction facilities – payment gateway
