e-Marketplaces: B2B Exchanges

Overview/Description
 Why sell your wares door-to-door, one customer at a time, when you can go to a central meeting place and market your product to several potential clients simultaneously? A B2B exchange embodies this philosophy. It is an "online marketplace" where businesses can meet online to buy, sell, and trade products and commodities. One of the most obvious benefits of such an exchange is that these marketplaces are not restricted by geographical boundaries, which creates an online meeting place for thousands of companies with similar needs. Participating on an exchange will give your business instant access to potential business clients, customers, and partners, and up-to-date data in a rapidly expanding economy. This will greatly reduce the costs involved in randomly searching for another business with which to buy, sell, or trade commodities and products. Most importantly, participating on an exchange will broaden your company's reach and reduce the cost of selling and purchasing products and commodities. B2B exchanges are a natural extension of the new virtual economy that is rapidly evolving, and they warrant further consideration. This course explains how a B2B exchange works, the four B2B exchange trading models, and how you can select a suitable exchange with which to integrate your business.

Target Audience
 This series of courses is directed towards company executives and managers wishing to initiate or improve e-commerce applications.

Expected Duration
2.0 hours

Lesson Objectives:

The Economics of B2B Exchanges

  • recognize the benefits of participating on a B2B exchange.
  • match the elements of a B2B exchange relationship to their appropriate descriptions.
  • match trading hubs to examples of the business needs that each trading hub meets.
  • choose the appropriate trading hub, for a given company.
  • identify examples of revenue fees that a host site derives from its participants.

    • Trading Models on the Internet

  • recognize the benefits of understanding B2B trading models.
  • identify the characteristics of the aggregator trading model.
  • identify the characteristics of the buyer-seller negotiations model.
  • identify the characteristics of seller-driven and buyer-driven auction markets.
  • choose the appropriate auction market, for a given situation.
  • sequence the steps that will occur during an automated exchange.
  • choose the most effective exchange model for handling a company's transaction, in a given situation.

    • Establishing a B2B Exchange Relationship

  • recognize the benefits of establishing an appropriate B2B exchange relationship.
  • recognize the three selection criteria for choosing a B2B exchange.
  • determine the quality of a B2B exchange based on its value-added services, given a scenario.
  • identify the business requirements necessary for initiating an exchange relationship with a host B2B exchange site.

    • Course Number: EBUS0124