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Electronic Marketplaces
E-Commerce Presentation – “Electronic Marketplaces” by Kristina Becker
Table of Contents
1. Definition2. Different Types of Electronic
Marketplaces3. Advantages of Electronic Marketplaces4. Profitability & Use of Electronic Market-
places5. Problems with Electronic Marketplaces
E-Commerce Presentation – “Electronic Marketplaces” by Kristina Becker
1. Definition
Electronic shopping platform in the internet Many sellers can offer their products & services Many buyers can satisfy their interest to buy or
inform about products &
services Trade function as in the
traditional market place
E-Commerce Presentation – “Electronic Marketplaces” by Kristina Becker
2. Types of Electronic Marketplaces B2B Marketplaces:
Better known E-Procurement Professional acquisition of goods/services Automobile industry
B2C Marketplaces: Trading activity btw. companies & private individuals
C2C Marketplaces: Trading activity btw. two private parties
E-Commerce Presentation – “Electronic Marketplaces” by Kristina Becker
2. Types of Electronic Marketplaces
Horizontal Marketplaces: No specified product
range Department
store like “Kaufhof”
or “Karstadt”
E-Commerce Presentation – “Electronic Marketplaces” by Kristina Becker
2. Types of Electronic Marketplaces
Vertical Marketplaces: Products of one
kind Specialised store
E-Commerce Presentation – “Electronic Marketplaces” by Kristina Becker
3. Advantages of Electronic Marketplaces Eliminates geographical borders No opening times Reduced transaction costs Serves as an information platform Connects more than two parties
E-Commerce Presentation – “Electronic Marketplaces” by Kristina Becker
3. Advantages of Electronic Marketplaces Compare opportunities better Reduction of overall time expenditure Reduction of process costs Cutting in SC-costs and inventory levels Gain cost advantages Flexible price structure
E-Commerce Presentation – “Electronic Marketplaces” by Kristina Becker
3. Advantages of Electronic Marketplaces
However:High internal costsChance for 3PL (third
party logistics)
E-Commerce Presentation – “Electronic Marketplaces” by Kristina Becker
4. Profitability & Use of Electronic Marketplaces
Internet Access in Germany (above 18)
73%
27%
75 % use Internet to compare prices
63 % actually buy products
2007: 17.2 Billion Revenue via Electronic Marketplace
E-Commerce Presentation – “Electronic Marketplaces” by Kristina Becker
Internet Access
Source: http://www.destatis.de/jetspeed/portal/cms/
4. Profitability & Use of Electronic Marketplaces
E-Commerce Presentation – “Electronic Marketplaces” by Kristina Becker
(Source: E-Commerce Center Handel – Retrieved on 4th March 2010)
5. Problems with Electronic Marketplaces 56 % of Online-Purchasers have had bad
experience Problem: Payment Mechanism
79 % change to other providers when pre-payment required
60 % if credit card payment installed Seal of approval rate shrinks to 1/3
E-Commerce Presentation – “Electronic Marketplaces” by Kristina Becker
Questions?! Suggestions?!
….if not: Thank you for your attention!
E-Commerce Presentation – “Electronic Marketplaces” by Kristina Becker