| Selling products on a local (and even national) scale is | | | | lightning fast order response and distribution |
| not enough, so many businesses have taken a | | | | management. |
| decisive step and created virtual selling spaces, from | | | | One stop shop - many e-commerce online |
| where they could reach a global audience. In the | | | | marketplace businesses try to create a complete |
| following article we will have a look at the most | | | | experience for the visitor, where he or she can |
| successful forms of online marketplaces. | | | | choose from a huge variety of products and services. |
| Electronic commerce - a multi billion dollar industry. | | | | Time saving tools - such online businesses often |
| The terms e-commerce or ecommerce are extremely | | | | provide customers with integrated search features as |
| popular nowadays, and it seems more and more | | | | well as other comparison tools that help a customer |
| businesses are considering some form of online sales | | | | find the product in a timely manner. |
| or online promotion. According to Forrester Research | | | | The online auction business model |
| ecommerce generated sales worth US $12.2 billion in | | | | This sort of online marketplace relies on customer's |
| 2003. E-commerce has the exact same features of a | | | | bids on different products. The most popular online |
| local business - sales, distribution, marketing and | | | | marketplaces that use the online auction business |
| servicing of goods - except it all happens over the | | | | model are eBay and Amazon, but there are now |
| Internet. Millions of online marketplaces using | | | | thousands of reputable virtual marketplaces where |
| e-commerce techniques can be found on the world | | | | sellers and customers meet. Online marketplaces such |
| wide web and hundreds more are born every day. In | | | | as eBay simply facilitate the transaction between |
| the IT world, ecommerce is defined as an electronic | | | | sellers and clients and they also offer product display, |
| business application that has the primary goal of | | | | bidding tools and payment options. Here are the main |
| facilitating online transactions. From e-marketing, online | | | | positive features and strengths of the online auction |
| marketing and automated inventory management | | | | business model: |
| systems, electronic commerce also integrates other | | | | International sales - as this online marketplace reaches |
| features and tools such as supply chain management | | | | a global audience, sellers and buyers are no longer |
| or electronic funds transfer. Of course, e-commerce | | | | constrained by location. |
| wouldn't be possible without online transaction | | | | 24/7 availability - since the system of purchasing and |
| processing and different data collection and storing | | | | selling items is automated, you can place or receive |
| systems. | | | | bids at any time of the day or night. |
| Why e-commerce works | | | | Buying intensity - some interesting sociological |
| There are different aspects that make e-commerce | | | | phenomena define online marketplaces such as eBay. |
| the power source of all online marketplaces: | | | | There are many similarities between bidding on a |
| Value for money - there are fewer costs to worry | | | | product and gambling, and the person that buys the |
| about when it comes to e-commerce, so vendors can | | | | product is announced as the "winner". |
| offer their merchandise at lower prices. In fact, this is | | | | High numbers of sellers and clients - the auction |
| the most important characteristic of all the large online | | | | process favors both sellers and bidders, and most |
| marketplaces that exist today. | | | | large online marketplaces encourage frequent |
| Personal attention - many ecommerce online | | | | participation in their programs. |
| marketplace websites offer personalized sales web | | | | Spiraling - this refers to the fact that the online auction |
| pages and free buying guides and resources. | | | | business model works like a spiral, with more sellers |
| Belonging to a community - each online marketplace | | | | attracting more bids, and vice versa. The huge |
| aims to become your "favorite Internet shopping zone". | | | | success of eBay is based on this phenomenon. |
| Many attract visitors over and over - often as paying | | | | Consumer surplus - the online auction business model |
| customers, by creating a sense of community through | | | | uses the so called first degree price discrimination. This |
| forums and chat rooms, as well as loyalty programs. | | | | represents the price that is above the market's line but |
| Prompt service - a good online marketplace will offer | | | | also situated under the demand of the consumers. |