Marketplaces
Definition
B2B marketplaces can be
described as a virtual online market where
buyers, suppliers, distributors and sellers find
and exchange information, conduct trade, and
collaborate with each other via an aggregation
of information portals, trading exchanges and
collaboration tools.
Facts and Figures
B2B e-marketplaces emerged
first in the mid/late 1990s. Their number
increased considerably during the dot.com boom
of 1999-2001, from 300 e-marketplaces world-wide
in 1999 to over 1.500 in their height in 2001.
Since then, however, the number has decreased
again and a consolidation can be noticed.
Berlecon Research recently counted 381 B2B
marketplaces in Europe and 669 in North America.
In the mid-term – so the
prognosis of experts – only maximal two to three
electronic marketplace platforms per sector will
survive. For an overview of the most important
B2B e-marketplaces per industry sector check
Marketplaces: main industry
sector B2B e-marketplaces at a glance.
B2B marketplace models
There are a number of ways to
differentiate B2B e-marketplaces. Four main
distinctions that can be made are:
-
according to their
ownership structure. It is possible to
identify three types of e-marketplaces
according to their ownership structure:
third-party e-markets – i.e. e-markets which
are run as neutral communities of many sellers
and many buyers, consortia e-markets - i.e.
communities founded by a few large
participants joining forces to face their
market inefficiencies, and private exchanges –
i.e. communities where one large player
establishes one-to-many connections to ensure
in depth integration and tight relationship
with its buyers / sellers.
-
according to their
industry orientation. A distinction can be
drawn between horizontal and vertical
services. Vertical e-marketplaces focus on the
needs of a specific industry, horizontal
e-marketplaces on processes and functions that
are common to a wide range of industries, e.g.
buying Maintenance Repair and Operation
products.
-
according to the
transaction mechanism they offer, e.g.
catalogue aggregation, buyer aggregation,
auctions, Real time exchange and
collaboration platform.
-
according to the
technology approach. A distinction can be
made between centralized e-marketplace models
supporting many-to many processes, and
peer-to-peer technology based electronic
marketplaces which do not require a
centralized server but are based on P2P
partners operating independently.
Which e-marketplace type will
dominate the particular industry depends on the
industry level of concentration and the relative
market power of buyers and suppliers, as well as
on the type of the product traded and the
complexity of the business processes involved in
its production. For more information and case
studies check our
B2B marketplaces report.
Revenue Models
How do B2B marketplaces make
money ? The most significant sources of revenue
are:
-
Transaction fees
-
Subscription and membership
fees
-
Advertising fees
-
Software sales and licenses
-
Professional service
charges
-
Referral fees
-
Gain sharing
For more information and
practical examples check our
B2B marketplaces report.
Trends
According to the
Forrester study "E-Marketplaces: Rebound and
Deliver", of Europe’s 25 leading
e-marketplaces and 30 companies (March 2002), 88
% of the main e-marketplaces are currently
unprofitable and only 36 % are expected to reach
a break even during 2002. The leading 25
marketplaces generated just 350 mio Euro in
revenue during 2001 - but have received a total
of 2 bio funding from VCs and industry.
E-marketplace usage remains low by European
firms. During 2001 only 6 % purchased more than
5 % of direct materials through a net market, 80
% sold less than 1 % of goods through an
exchange.
To survive the shake out,
independent marketplaces are therefore searching
for new, original business models that offer
significant cost savings and/or enhanced revenue
opportunities to both buyers and sellers. Most
marketplaces are refocusing today either o a
particular horizontal or vertical niche within
highly fragmented industries, or on low-risk
trading activities. Some of them are simply
backing up from this kind of business and become
software solution providers or hosts for other
e-marketplace enablers.
Marketplaces: main industry
sector e-marketplaces at a glance
Which are the main
e-marketplaces per industry sector ? The
following table gives an overview. However: the
information has to be taken with care, due to
the fast changing nature of the B2B marketplace
environment.
For more detailed information
you can consult the
B2B
WebSites Directory, which gives a
comprehensive overview on B2B Marketplaces
worldwide. |
RoDI
ISOC
IWA
ARTT
RTS
WQC 2003
ISAQ 2005