Security of e-Marketplaces
Since most online transactions are conducted via inputting important personal information (or in this case a company’s bank details), it is important for any e-Marketplace to ensure that the personal information of their client’s remains safe. Studies such as those by Jai-Yeol & Benbasat (2006) state that it is highly unlikely for customers to patronize a website with known security issues due to the potential for identity theft and significant financial loss.
It is due to this that success for an e-Marketplace is often connected to the type of reassurance they can give their current and potential customers that their data will remain safe and secure with the company (Ghenniwa et al., 2005). Some solutions to this come in the form of Escrow services which help to ensure that businesses on both ends (i.e. buyer and seller) comply with the requirements of the contract.
Reliability of e-Marketplaces
Customers require a certain level of reliability when it comes to choosing which places to patronize for their product purchases (Kros et al., 2011). Reliability in this case comes in the form the overall dependability and consistency of the eMarketplace itself Vanelslander et al., 2013).
For example, Vanelslander (2013) explains that consistency and dependability for an eMarketplace take the form of the service being capable of provisioning the same type of service over and over again without significant changes in the way in which it is conducted. This is at times related to the software of the eMarketplace itself wherein it should be reliable enough to be able to provision service orders utilizing a predetermined process.
This means that the process should be the same for multiple purchases without the client having to go through an entirely different type of payment or purchase procedure should they want to purchase the same product again. This is in part due to what Balocco, Perego & Perotti (2010) defines as “consumer expectancy on purchases” wherein consumers expect consistency in the type of service provisioned by an eMarketplace.
Such aspects are resolved at the present through the implementation of online order tracking numbers, the customer service representatives that handle client concerns as well as the way in which the e-Marketplace itself expands its brand (Julia et al., 2011).
Complementary services of e-Marketplaces
Complementary services of e-Marketplaces can be considered as “added services” that make the process of conducting transactions online that much easier (Lu et al., 2012).
In the case of eMarketplaces, this can take the form of regional reports regarding the current business situation in particular countries, directories which enable potential buyers to immediately find the type of sellers they need, case studies which were paid for by the company which examine current and upcoming industries as well as monthly newsletters detailing current industry trends and “hot items” (Chen, Li, & Li, 2013).
Leong (2013) states that such services enable individual buyers and companies to make better buying and selling decisions which in turn helps to improve the means by which they are able to properly operate in an online marketplace.
What this example shows is that value creation for eMarketplaces increases by offering different bundles of complimentary services to users. This in turn makes users more likely to utilize that specific eMarketplace due to the ease by which transactions can be conducted as compared to when such complimentary services are absent.
Dimoka, Hong & Pavlou (2012) states that successful eMarketplaces leverage their complimentary services in such a way that they become associated with such services resulting in better customer retention which in turn creates more long term profits.
Strong infrastructures of e-Marketplaces
When it comes to ensuring that they can meet the demands of their consumers, e-Marketplaces need to be able to have a strong underlying infrastructure in order to make the purchase process a seamless and convenient process for the client (Rice, 2012).
For example, in the case of eMarketplaces such as NASDAQ which deal in the sale of stocks or even in online eMarketplaces which deal in bidding practices involving the sale of oil, gas and mineral resources to clients, a strong underlying resource in the form of a reliable online system is needed to ensure that all bidding, sales and payments that are conducted are guaranteed and secure (Dadzie & Winston, 2007).
Dadzie & Winston (2007) explains more on this issue by stating that when conducting business transactions online, customers require “a definitive guarantee that when they make a transaction based on what was agreed upon in the stipulations listed in the eMarket, that it would be upheld”.
Without this guarantee through a strong infrastructure of software and internal regulations, it is unlikely that anyone would utilize an eMarketplace due to the unreliability of the service and possibility that all transactions conducted could easily be backed away from between the two parties conducting them (Dadzie & Winston, 2007)..
Regulatory requirements of e-Marketplaces
Regulatory requirements in the case of eMarketplaces are essential due to the necessity of proper conduct between buyer and seller. Ash & Burn (2006) expounds on this by stating that eMarketplaces need to put in place proper regulations to enforce or restrict the buying and selling of certain products based on policies for the type of market environment they want to be associated with (i.e. mining, general items, etc.).
For example, many eMarketplaces at the present prevent the sale of items that are distinctly pornographic in nature as well as prevents the sale of controlled substances such as alcohol and tobacco (Ash & Burn, 2006). The reason behind this is connected to the possibility that buyers may in fact be minors. As such, proper regulations must be enforced to create an ethical and safe buying/selling environment.
Reference List
Ash, C. G., & Burn, J. M. (2006). Evaluating Benefits of e-Procurement in a B2B Marketplace: A case study of Quadrem. Journal Of Information Technology Case & Application Research, 8(2), 5-23.
Balocco, R., Perego, A., & Perotti, S. (2010). B2b eMarketplaces: A classification framework to analyse business models and critical success factors. Industrial Management & Data Systems, 110(8), 1117-1137.
Chan, F. S., Bhagwat, R. R., & Wadhwa, S. S. (2009). Study on suppliers’ flexibility in supply chains: is real-time control necessary?. International Journal Of Production Research, 47(4), 965-987.
Chen, Z., Li, X., & Li, X. (2013). Incentive strategies in user community of online trading platform – bilateral market uncertainty perspective. International Journal Of Networking & Virtual Organisations, 12(1), 14-26
Dadzie, K. Q., & Winston, E. (2007). Consumer response to stock-out in the online supply chain. International Journal Of Physical Distribution & Logistics Management, 37(1), 19-42.
Dimoka, A., Hong, Y., & Pavlou, P. A. (2012). On product uncertainty in online markets: theory and evidence. MIS Quarterly, 36(2), 395-A15.
Ghenniwa, H., Huhns, M. N., & Shen, W. (2005). E-Marketplaces for enterprise and cross enterprise integration. Data & Knowledge Engineering, 52(1), 33-59.
Jai-Yeol, S., Tu, L., & Benbasat, I. (2006). A descriptive content analysis of trust- building measures in b2b electronic marketplaces. Communications Of The Association For Information Systems, 182-51.
Julia, E., Alan, M., & Sharon, C. (2011). Comparative carbon auditing of conventional and online retail supply chains: a review of methodological issues. Supply Chain Management, 16(1), 57-63.
Kros, J. F., Scott Nadler, S. S., & Chen, H. (2011). The adoption and utilization of online auctions by supply chain managers. Transportation Research: Part E, 47(2), 105- 114.
Leong, J. (2013). Price Dispersion in Online Grocery Stores: An Analysis of the UK Market. Atlantic Economic Journal, 41(2), 185-187.
Lu, Z., Zhao, J., & Chi, M. (2012). Antecedents and consequences of e-supply chain coordination capability for enterprises: an empirical study in China. International Journal Of Networking & Virtual Organizations, 10(3/4), 361-373.
Rice, S. C. (2012). Reputation and Uncertainty in Online Markets: An Experimental Study. Information Systems Research, 23(2), 436-452.
Ryan, J. K., Sun, D., & Zhao, X. (2013). Coordinating a Supply Chain With a Manufacturer-Owned Online Channel: A Dual Channel Model Under Price Competition. IEEE Transactions On Engineering Management, 60(2), 247-259.
Vanelslander, T., Deketele, L., & Van Hove, D. (2013). Commonly used e-commerce supply chains for fast moving consumer goods: comparison and suggestions for improvement. International Journal Of Logistics: Research & Applications, 16(3), 243-256