Role of Mobile Computing in E-Commerce

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B2B Participation and Transactions

The actual number of sellers and buyers (parties) and with the mode of engagement or participation used in the B2B model determine the transaction types, they can be classified into 4 categories as below, based on the number of parties involved:

- Sell-Side transaction: This type of transaction is when many buyers are buying from a single seller. This is also called one-to-many transaction type.

- Buy-side transaction: This type of transaction occurs when one buyer invites product or service offers from many sellers. This is also called one-from-many transaction type.

- Exchanges: When many sellers and buyers interact on a platform run by intermediaries. This is also called many-to-many transaction.

- Supply chain improvement and collaborative transaction: This transaction serves as support or auxiliaries to the B2B EC, but is equally important as the other EC transactions as this forms the backbone of any EC system. This comprises of activities other than selling or buying among business partners, e.g., procurement of raw material, manufacturing, shipment, logistics, supply chain improvements, communicating, collaborating and sharing of information for planning and management activities.

Parties involved in any B2B EC are – sellers, buyers, and intermediaries. Based on the participation or parties involved in the transaction, we can categorize B2B transactions into two basic types: spot buying and strategic sourcing.

Spot buying: This refers to the purchase of goods and service on the need to use basis and the supporting transaction happens as the prevailing market prices controlled by the supply and demand trend of the hour. In such a transaction, the buyers and sellers are anonymous entities to each other. They operate through public exchanges. E.g., Stock and commodity exchanges.

Strategic Sourcing: This consists of purchases based on long-term contracts between the two engaging parties and the parties are known to each other prior to the transaction. These transactions occur more effectively and efficiently through a direct buyer-seller negotiation done over private marketplaces or private trading rooms.

Conclusion

There is an apparent need to rethink the types of e-business models to be adopted as businesses make their transition toward the electronic environment completely. This is particularly evident in the B2B market where e-business has seen a significant growth. Mahadevan (2003) has rightly pointed out, “while the emergence of newer market structures for conducting business through electronic markets is an indication of greater acceptance among practitioners, it introduces newer issues for detailed study, the most significant is that of making sense of these emerging market structures and answering the crucial question of when to exploit them.”

References

Derfler Jr., F. J. (2000). B2B E-Commerce. PC Magazine, 19(8), 4.

Mahadevan, B. (2003). Making Sense of Emerging Market Structures in B2B E-Commerce.

California Management Review, 46(1), 86-100.

Turban, E., & King, D. (2012). Electronic commerce 2012: A managerial and social networks

perspective. (7th ed.). Prentice Hall, ISBN-13: 9780132145381.