A lot is at stake when you are running your own business. E-marketplaces are something that you should consider being a part of if you are a business owner of either small- or medium-size business. If you want to be successful in online selling and buying of products and services, you should be part of this thriving community. This type of marketplace has made B2B companies benefit from each other. B2B e-commerce revenues have increased thanks to the existence and contribution of these e-marketplaces. Prior to learning about the benefits of using this marketplace for your business, you have to know what this marketplace is all about first.
So, what is an e-marketplace? When you say e-marketplace, you are referring to an online platform where both business buyers and sellers get together to communicate, make business transactions and collaborate with each other. This is the place where thousands of companies are able to come together. The main purpose of these e-marketplaces is to ensure that their members will be able to conduct their business transactions with each other online. You also refer to this particular marketplace as B2B exchanges.
For all your company-specific needs, there is a wide array of e-marketplaces online that can help you out. Your e-marketplace options include private, public, vertical, and horizontal. If you look at public e-marketplaces, you will see that they are open to every company possible while a private one has some restrictions where companies must meet certain criteria. If the products and services being sold and bought come from different industries, you have a horizontal e-marketplace. Meanwhile, with vertical e-marketplaces, the industry must be specific.
Engaging in business transactions in these e-marketplaces can actually benefit your company in more ways than one. You can enjoy both productivity and cost-saving benefits when you become a supplier or a buyer in these e-marketplaces.
An automated purchasing procedure is what you can expect from a good e-marketplace as a buyer. The e-marketplace system will let you receive invoices, purchase orders, receive quotes, and request quotes from possible suppliers. There is no more need to divide your procurement processes because such a marketplace will let you consolidate them virtually in one place. This allows you to save on your transaction processing costs as well as make your company more efficient. The processing costs of companies have gone down up to 70% with the help of B2B procurement systems.
Comparison shopping is also made possible with the help of e-marketplaces. If you have a particular product in mind, an e-marketplace will show you possible suppliers that can give it to you. You can then compare easily between companies regarding their delivery time, quality, costs, geographical location, and the like. And the best part about e-marketplaces is that you are given security about their suppliers. View here for more information about e-marketplaces.