Guide

E-marketplaces, online auctions and exchanges

Benefits of e-marketplaces

The potential advantages to be gained by joining an e-marketplace will vary between industries and businesses, and indeed between buyers and sellers. Some of the potential benefits are summarised below.

General business benefits

  • There are greater opportunities for suppliers and buyers to establish new trading partnerships, either within their supply chain or across supply chains.
  • E-marketplaces can provide greater transparency in the purchasing process since availability, prices and stock levels are all accessible in an open environment.
  • Time constraints and problems with different office hours for international trade are removed as it is possible to operate on a round-the-clock basis.

Benefits for the buyer

  • Updated information on price and availability makes it easier to secure the best deal.
  • E-marketplaces offer a convenient way to compare prices and products from a single source rather than spending time contacting each individual supplier.
  • Established e-marketplaces provide a level of trust for the buyer as they are dealing exclusively with suppliers who are members.

Benefits for the seller

  • Regular requests for quotations from both new and current customers are possible.
  • It provides an additional sales channel to market and sell products.
  • E-marketplaces can offer reduced marketing costs when compared with other sales channels.
  • The use of international e-marketplaces can provide opportunities for overseas sales that you would not otherwise be aware of.