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Grow_your_business_using_B2B_emarketplace_ _Part_II
| Grow your business using B2B emarketplace - Part II
Selecting the right emarketplace
Although, IT spending has been staying flat for the last several
years, corporate spending in e-business is gaining significant
ground and at present surpasses 20 percent of overall IT budget.
This means, more and more businesses are undertaking ecommerce
initiatives, and as a result increasing sales, streamlining
business processes and dramatically boosting productivity.
Most experts agree that average business, which is slow in
adopting e-business applications, risks loosing its competitive
edge to their more progressive rivals.
Emarketplaces provide with a great opportunity for small to
medium size companies to test online business for a minimal
risk. This is due to the factor that the e-business applications
that come along with an emarketplace membership package are
prohibitively expensive to develop in-house by most companies,
and require large professional workforce to operate. As an
example: product content development with required attributes,
suitable for e-business, itself might feel like a daunting task
for most offline companies.
So, as a company, what should be your first step in starting
e-business through emarketplaces?
Naturally, out of hundreds of emarketplaces available today, you
have to find one that matches all your requirements. Choosing
right kind of emarketplace
In best case scenario, if yours is a large enough company, you
should build your private emarketplace with all the necessary
features specific to your business. The potential of having your
own emarketplace is amazing!
- Ecommerce will add value to your existing business
transactions - Your present suppliers will be able to post most
updated information on their products via e-catalog and their
storefront - You can build community from your present buyers
and supplier, or invite members on the Internet - Real time
marketplace will allow you to take quick buying and selling
decision - Both buyers and sellers can contact you through
Instant Messaging System - Your entire supply chain process can
be managed from one place - You can issue real time purchase
tenders with either limited access only to your community
members or open to public - Sell your stock lots through online
auction - Brand you emarketplace and establish your company as a
serious online player within your Industry
However, as I mentioned earlier, if you are not a very big
company, you will probably be better off with a membership in an
established emarketplace.
If you are a manufacturer, wholesaler or a buyer of certain
industry specific products or services, your best choice would
be a vertical emarketplace that caters specially your industry.
For example: if you buy or sell fish, you should look for an
emarketplace that deals with this product only. Another thing
that you should keep in mind is how geographically limited your
business is. If you buy and sell fish within the locality of
your state or region, if available, get an emarketplace that
works in your region.
Totally different story, if you carry large number of products
from different industries; for you a horizontal marketplace that
cater a range of industries is a better choice. If you are an
international trader involved in import or export, you should
select a global emarketplace, which has members from the
countries you deal with. Features that are must
A good emarketplace amasses various features in order to
facilitate smooth transactions of business deals. However, there
are some key attributes that are absolutely necessary for any
emarketplace to become successful; and as a prospective member
you should look for these features and characteristics while
choosing an emarketplace for yourself.
Product catalog based on an industry-standard classification
system While it might not look so important from the surface; to
have accurate, well-defined and timely-updated product content
is extremely crucial for any online business. Since you have to
integrate your product catalog to the aggregated electronic
catalog of the emarketplace, which could be a very complex task,
you should make sure that the classification system that they
have is widely used online; and if necessary you can use same
product content with other emarketplaces or e-procurement
applications.
The best option, as I believe, is based on The Universal
Standard Products and Services Classification (UNSPSC), which is
a global coding system that classifies products and services.
This categorization scheme covers the broadest collection of
industries and commodities available today, and designed to
facilitate e-commerce transactions by providing
geography-independent common nomenclature system.
Product search capability within the marketplace and e-catalog
Members of the emarketplace should be able to locate any product
or service, whether in the auctions, marketplaces, or in the
catalog with ease. Advanced search function should allow finding
required items using precise query.
Supply chain process, i.e. request for quote, quotation,
purchase order, billing system, etc. Efficient supply chain
management is the number one strategic priority for many
businesses. In 2001, Cisco System alone had to write off US $2.5
billion in excess inventories due to poor management of its
numerous outsourcing contractors. E-marketplaces can help
streamlining your supply chain process if the required features
are embedded in their system.
Directory of members Usually most emarketplaces incorporate a
searchable directory of their members. The members get an added
opportunity of creating new business relations and increasing
sales thanks to this feature.
Product content adding and editing interface In order to make
product content adding and maintaining easier for sellers, the
marketplace must have an uncomplicated tool. The tool could be a
wizard-based combination of simple forms. To integrate larger
catalogs speedily and efficiently the emarketplace should have
XML based interface.
Ability to promote products and services The process of posting
an offer for sale of a product or a service on the marketplace
should be simple and easy but sophisticated enough to create
dynamic offer, offer with time limit, variable pricing based on
quantity, etc.
Apart from the above mentioned functionalities that facilitate
conducting e-business, other key characteristics of a quality
e-marketplace should include:
Simplicity – An emarketplace should be easy to learn and use.
Large Community – The quantity of members should be big enough,
so that new participants can expand their business. Flexibility
– Emarketplace functions should be flexible enough to modify or
add with new features when necessary. Neutrality – The
emarketplace should be an unbiased venue for both sellers and
buyers. No member should have any privilege at the expense of
others. Providing an open and transparent market for all the
participants is an important constituent of the value
proposition of an emarketplace.
Cost of doing business through e-marketplace
In general, thanks to the large member base, e-marketplaces
charge a reasonable subscription fee if you would like to
participate in it. Many emarketplaces also charge a nominal fee
for each trade made using their facilities. Other costs
involved, that you should consider, are internal workforce
needed to handle business via emarketplace, catalog integration
and maintaining, etc. In any case, the cost of doing business
through emarketplaces is negligible for most businesses compare
to the gains they make.
Get your partners involved
If you just build a corporate website and don’t spend required
time and money to promote, it won’t bring any business. Same
goes for emarketplace! Mere participation in an emarketplace
also will not produce any significant benefit if you don’t
convince your existing buyers and suppliers to work with you
through your chosen emarketplace.
About the author:
Nowshade Kabir is the founder, primary developer and present CEO
of Rusbiz.com. A Ph. D. in Information Technology, he has wide
experience in Business Consulting, International Trade and Web
Marketing. Rusbiz is a Global B2B Emarketplace with solutions to
start and run online business. You can contact him at
mailto:nowshade@rusbiz.com, http://ezine.rusbiz.com,
http://www.rusbiz.com
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