IT 204: E-Commerce
By the end of this chapter, you will be able to:
Definition: An online platform where businesses buy and sell goods, services, and information from other businesses.
They act as digital intermediaries, creating efficiencies for both buyers and sellers.
B2B marketplaces can be categorized based on who owns them and how they serve the market. We will explore four key models.
Single-company owned, seller-focused.
Company-owned, buyer-focused.
Independent, market-focused (neutral).
Industry-owned, vertical market-focused.
Concept: Online marketplaces owned and operated by a single company to sell its own products and services. Often an online extension of an existing business.
A massive US-based industrial supplier. Their website acts as a one-stop-shop for businesses to buy maintenance, repair, and operating (MRO) supplies directly from Grainger.
Concept: Marketplaces that automate the procurement (purchasing) process, typically used by large businesses to buy from a variety of approved suppliers.
Imagine a large university creating a private portal. Pre-approved suppliers (for office supplies, lab equipment, etc.) list their products, and all university departments must purchase through this system for better rates and control.
Concept: Independent, third-party online marketplaces where many buyers and sellers trade goods and services, often commodities.
Just as traders buy and sell stocks, businesses use exchanges to buy and sell physical commodities at the current market price, ensuring transparency and competitive pricing.
Concept: Industry-owned vertical marketplaces that serve the specific needs of a single industry, founded by a group of leading companies in that sector.
Founded by major automakers (GM, Ford) to create a central marketplace for buying auto parts from thousands of suppliers. It unified complex supply chain interactions for the automotive industry.
While still in early stages, Nepal's B2B e-commerce scene is growing with platforms tailored to local business needs.
Connects manufacturers and wholesalers with retailers. A classic marketplace model for fast-moving consumer goods (FMCG), office supplies, and more.
A specialized information portal that aggregates government and private sector tenders. It functions as an e-procurement hub for businesses seeking contracts.
A prime example of a B2C company expanding into B2B. They leverage their existing logistics network to offer corporate catering and food supply services to other businesses.
Any Questions?
Next Up: Unit 9 - B2B Marketing & Social Media