Activities in Marketplace, Vertical & Horizontal Market

1. MAJOR MODELS OF
B2B E-COMMERCE
Reporter:
Ms. Julanie Salo

2. Buyer-side Marketplace
• A buyer or a group of buyers, opens an electronic marketplace &
invites sellers to bid on announced product or request for quotation.
• Using this model, buyers can manage the procurement process more
effectively, lower administrative costs, and implement uniform pricing.

3. By participating in buyer-side marketplace, sellers could do the ff:
• Conduct sales transaction
• Automate the order management process
• Conduct post sales analysis
• Automate the fulfillment function
• Improve understanding of buying behaviors
• Provide an alternative sales channel
• Reduce order placement and delivery time

4. Third-party Exchange Marketplace
This model isn’t controlled by sellers or buyers,
instead it is controlled by a third party and the
marketplace generates revenue from the fees
charged for matching buyers and sellers.

5. These marketplaces are usually active
in vertical or horizontal markets
Vertical Market
- concentrates on a specific industry or market.
Horizontal Market
- concentrates on a specific function or business process and
automates this function or process for different industries.

6. Trading Partner Agreements
-Automate negotiating process and enforce contracts
between participating businesses.

7. END OF REPORT