Ebusiness B2B Exchanges and Marketplaces

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Affiliate Programs and Networks:

What metrics are used to track and reward success in an affiliate program/network?

The metrics are keeping track of (using software online that counts) the number of click-throughs from an affiliates site for which the affiliate is sometimes rewarded and also of the number of converted click-throughs (those click-throughs where the customer actually buys) originating from an affiliate's site. It is also important for the online tracking software to record the amount of each completed transaction and of course where the click-through originated (which affiliate's site).

What are the limitations of this as a sales and marketing tool?
The limitation is that if the affiliate sites are not interest targeted or related, will most likely fail. Current statistics show that clicks on banner ads run an average of 3-7% when targeted, meaning when the product the banner ad is promoting matches the interests of the customers on the affiliate. I can only imagine the statistics on clicks when it's not interest based (Levitt,1998).

Also web surfers can be extremely difficult to distract from the main purpose of their surfing. If a customer is focused on finding out about plasma TVs, for example, that person is most likely not going to click on a banner for jewelry sales even if the company being advertised is the best in the business. I wasn't looking for a flower shop, so seeing an ad for one is less likely to interest me than if I had been looking for a flower shop (Levitt,1998).

E-Marketplaces and Exchanges:

What are e-Marketplaces and B2B Exchanges and how have they evolved and changed over the last 5 years (cite statistics and examples to support your answer)?

"B2B Exchanges and e-Marketplaces are firms that link multiple buyers (of raw materials, office supplies, etc.) to sellers via an online network and allow them to conduct transactions in real-time, though they can also help perform (but rarely used in) other value-added services such as customized product design and quoting, vendor management (e.g., RFP/RFQ management, vendor prequalification, bidding), order processing (JIT ordering, order tracking), and collaborative planning (e.g., forecasting, VMI, supply planning) (Bhattacherjee, 2002)."

"Encouraged by the purported network effect, low operational costs (e.g., zero inventory), and tremendous success of eBay in the consumer sector, these Internet firms once promised to revolutionize the way firms interact and transact with other firms in performing critical business processes. For buyers, the advantages of using e-marketplaces include:

Evolution of B2B E-Marketplaces

The earliest B2B marketplaces started about the year 1996. Since then, they have evolved as follows:

? B2B Brochure-ware (pre-1996):

o Online catalogs with some search capabilities but no commerce.

? B2B Catalogs (1997):

o This is the one-too-many model that creates value via aggregation, i.e., aggregating buyers and giving them a choice of suppliers and facilitating commerce. Examples: Grainger.

? B2B Auctions (1998):

o One-to-many model that creates value via market-making (matching buyers to sellers), plus aids in the price discovery process. Two types:

1. Buy-side hub: Model for early e-procurement projects, e.g., GE Lighting, Honeywell (auctions created by Freemarkets) that focuses on buying process automation, lowering catalog management costs (via standardization), and biased toward buyers.

2. Sell-side extranet: Model for surplus inventory disposal by sellers, e.g., Ingram Micro Auction Block, AdAuction (online and print ads), iMark.com (used capital equipment); biased toward seller, provides secure access to one seller catalog, but no integration with buyer systems or processes.

? B2B Exchanges (1999-2000):

o This is the Many-to-many model that creates value via market-making, price-discovery, and/or value-added services such as settlement and clearing, escrow, shipping, etc.
o Neutral e-market for buyers and sellers to interact and/or trade, e.g., e-Steel, Cephren, PaperExchange, and Fastparts.com.

? Global Trading Web (2002-):

o B2B trading exchanges that will link multiple e-marketplaces across international boundaries governing multi-faceted, complex business processes such as dynamic configuration of the entire supply chain (e-design + e-procurement + e-sourcing), or procuring from global suppliers (e-procurement + financial exchange + currency exchanges), or futures exchanges, barters, or commodity swaps. ...