Online exchanges
In online exchanges (also trading hubs called) is a kind of virtual market that work with forms of pricing and transaction allocation, the same of a stock exchange. They usually appear as internet portals and process payments as so-called clearers . Buyers and sellers trade in goods and services without coming into direct contact. The internet portal acts as an intermediary between both parties. As in an exchange, the price is determined by supply and demand. The fees incurred when trading on online exchanges are usually calculated either as a percentage of the purchase price or per transaction. Depending on the type of portal, these costs are borne either by the buyer, seller or both. In practice, however, it is customary that the amount depends on the amount of the sales value and is borne by the seller.
Types of online exchanges
Buyers and sellers can be companies or private individuals, so online exchanges can be set up in business-to-business (B2B), business-to-consumer (B2C) and the consumer-to-consumer (C2C) markets that rarely occur in practice subdivide. Government organizations also use online exchanges to purchase or sell goods and services.
B2B
Online exchanges are particularly important in B2B as they give small and medium-sized companies access to a more or less large group of buyers or a range of offers. On the other hand, they enable larger companies to efficiently reduce inventory levels. Another reason for using online exchanges for companies is anonymity, as the seller receives data about the buyer, such as B. Solvency is not apparent. A disadvantage of this type of trading is that no long-term supply relationships are established, which can be very important for products tailored to a company. For trading on an online exchange, standardized products such as B. Consumer goods or office and business equipment.
B2C
While online exchanges are already established in the B2B sector, the development in the B2C area is much less advanced. They perform similar tasks as price comparison portals , but still have some differences for users. The advantage over price comparison portals here on the retailer side is mainly the increased sales opportunities and the organizational relief. For customers, the name of the retailer from whom they buy products via the portal is either not visible at all or only plays a role in the event of a guarantee. This can be disadvantageous for dealers, as it is much more difficult to win regular customers than through direct contact with the customer. For consumers, in addition to the wide range of offers, the B2C online exchanges offer, above all, the high level of security for payments, which is guaranteed by the internet portal as a clearer. A disadvantage, especially when trading in goods, is the longer delivery times compared to buying them directly from the dealer.
See also
literature
- Christina Hultmark: Internet Marketplaces - The Law of Auctions and Exchanges Online, Oxford University Press, June 2003, ISBN 978-0199254293
- Warren D. Raisch: The eMarketplace Strategies for Success in B2B eCommerce - Successful Strategies for B2B ECommerce, published by Mcgraw-Hill Professional Verlag, 2001, ISBN 978-0071361231
- Johann Jessen: B2C Electronic Commerce - An Inventory, published by Vs Verlag, 2003, ISBN 978-3810038432