B2B Integration : A Practical Guide to Collaborative E-commerce

444 B2B Integration — A Practical Guide to Collaborative E-commerce
Private — E-marketplaces that restrict the participation of buyers and
sellers, either because they are truly extranets or virtual private networks
(VPNs) or industry-sponsored hubs for exclusive participants are known
as private exchanges.
Pass-through vs. brokered e-marketplaces
Pass-through — E-marketplaces that are responsible for just the
introduction of buyers and sellers are called pass-through exchanges.
They do not offer any transaction processing services, leaving it to
the individual parties involved. Such a model is suitable only for direct
materials transactions where buyers and sellers do business based on trust.
Brokered — E-marketplaces that facilitate the entire transaction, apart
from providing a platform where buyers and sellers can meet, are called
brokered exchanges. They are suitable for indirect material transactions
(MRO — maintenance, repair and operating supplies like office
stationery, etc.).
15.2.4. Market makers
Apart from providing typical e-marketplace services such as portal and
mediator model-based exchanges, market makers actually provide
liquidity and stability in the marketplace by buying from sellers and
selling it to buyers. Market makers exert direct influence on demand
and supply and thereby on the prices. This concept is very popular in
the financial and utility industry.
15.2.5. Dynamic trading through B2B e-marketplaces
B2B e-marketplaces enable the formation of dynamic trading communities
where a community of buyers and sellers can trade online. Dynamic
trading occurs when market conditions, such as volatility, supply and
demand and other external factors determine the price at which companies
buy or sell goods and services. B2B dynamic trading occurs in the form
of RFP/RFQ bidding, liquidating excess inventories, etc.