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tomization Increases opportunities for collaboration 30 OnetoMany: SellSide Marketplaces Sellside emarketplace: A Webbased marketplace in which one pany sells to many business buyers from ecatalogs or auctions, frequently over an extra Three major direct sales methods: 1. selling from electronic catalogs 2. selling via forward auctions 3. onetoone selling 31 OnetoMany: SellSide Marketplaces (cont.) 32 OnetoMany: SellSide Marketplaces (cont.) B2B sellers clickandmortar manufacturers or intermediaries, usually distributors or wholesalers Customer service online sellers can provide sophisticated customer services 33 OnetoMany: SellSide Marketplaces (cont.) Configuration and customization customize products get price quotes submit orders 34 OnetoMany: SellSide Marketplaces (cont.) Major benefits of direct sales are: Lower orderprocessing costs and less paperwork A faster ordering cycle Fewer errors in ordering and product configuration Lower search costs of products for buyers Lower search costs of finding buyers for sellers Sellers can advertise and municate online Lower logistics costs Ability to offer different catalogs and prices to different customers 35 Selling via Auctions Using auctions on the sell side Revenue generation Cost savings Increased page views Member acquisition and retention 36 Selling via Auctions (cont.) Selling from the pany’s own site The pany will have to pay for infrastructure and operate and maintain the auction site If then pany already has an electronic marketplace for selling from ecatalogs, the additional cost may not be too high 37 Using intermediaries An intermediary may conduct private auctions for a seller, either from the intermediary’s or the seller’s site A pany may choose to conduct auctions in a public marketplace, using a thirdparty hosting pany 38 Benefits of using intermediaries no additional resources are required auction set up to show the branding (pany name) of the merchant rather than the intermediary’s name intermediary does the work of: controlling data on Web traffic, page views, and member registration setting all the auction parameters (transaction fee structure, user interface, and reports) integrating the information flow and logistics 39 OnefromMany: BuySide Marketplaces and EProcurement Buyside emarketplace: A corporatebased acquisition site that uses reverse auctions, negotiations, group purchasing, or any other eprocurement method 40 Procurement methods Buy from manufacturers, wholesalers, or retailers from their catalogs, and possibly by negotiation Buy from the catalog of an intermediary that aggregates sellers’ catalogs or buy at industrial malls Buy from an internal buyer’s catalog in which panyapproved vendors’ catalogs, including agreed upon prices, are aggregated 41 EProcurement eprocurement: The electronic acquisition of goods and services for anizations 42 EProcurement Conduct bidding or tendering (a reverse auction