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Chapter 2
E-Marketplaces:
Structures, Mechanisms,
Economics, and Impacts
Electronic Commerce Prentice Hall © 2006 2
Learning Objectives
1. Define e-marketplaces and list their components.
2. List the major types of e-marketplaces and describe their
features.
3. Describe the various types of EC intermediaries and
their roles.
4. Describe electronic catalogs, shopping carts, and search
engines.
5. Describe the various types of auctions and list their
characteristics.
6. Discuss the benefits, limitations, and impacts of
auctions.
Electronic Commerce Prentice Hall © 2006 3
Learning Objectives
7. Describe bartering and negotiating online.
8. Define m-commerce and explain its role as a
market mechanism.
9. Discuss liquidity, quality, and success factors in
e-marketplaces.
10. Describe the economic impact of EC.
11. Discuss competition in the digital economy.
12. Describe the impact of e-marketplaces on
organizations.
Electronic Commerce Prentice Hall © 2006 4
E-Marketplaces
• Markets (electronic or otherwise) have three
main functions:
1. Matching buyers and sellers;
2. Facilitating the exchange of information, goods,
services, and payments associated with market
transactions; and
3. Providing an institutional infrastructure, such as a legal
and regulatory framework, which enables the efficient
functioning of the market.
Electronic Commerce Prentice Hall © 2006 5
E-Marketplaces
•Electronic marketplaces (e-marketplaces or
marketspaces), changed several of the processes
used in trading and supply chains
– Greater information richness
– Lower information search costs for buyers
– Diminished information asymmetry between sellers and
buyers
– Greater temporal separation between time of purchase and
time of possession
– Greater temporal proximity between time of purchase and
time of possession
– Ability of buyers and sellers to be in different locations
Electronic Commerce Prentice Hall © 2006 6
E-Marketplaces
marketspace
A marketplace in which sellers and buyers
exchange goods and services for money (or for
other goods and services), but do so electronically
E-Marketplaces
• Marketspace components
– Customers
– Sellers
– Products and services
