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Chapter 2 E-commerce fundamentals 69

Sell-side @ supplier site
One-to-many

Trade via
supplier’s
web site

(a)

Buy-side @ buyer site
Many-to-one

Trade via
buyer’s
web site

(b)

Many-to-many
Neutral exchanges
Key
Trade via
intermediary
web site
Supplier Customer
(c)

Figure 2.8 Variations in the location and scale of trading on e-commerce sites

Table 2.4 Commercial mechanisms and online transactions

Commercial (trading) mechanism Online transaction mechanism of Nunes et al. (2000)

1 Negotiated deal Example: can use similar Negotiation – bargaining between single seller and buyer.
mechanism to auction as on Commerce One Continuous replenishment – ongoing fulfilment of orders
(www.commerceone.net) under pre-set terms
2 Brokered deal Example: intermediaries such as Achieved through online intermediaries offering auction and
Screentrade (www.screentrade.co.uk) pure markets online
3 Auction Examples: C2C: eBay (www.ebay.com) B2B: Seller auction – buyers’ bids determine final price of sellers’
Industry to Industry (http://business.ebay.co.uk/) offerings. Buyer auction – buyers request prices from multiple
sellers. Reverse – buyers post desired price for seller acceptance
4 Fixed-price sale Examples: all e-tailers Static call – online catalogue with fixed prices. Dynamic call –
online catalogue with continuously updated prices and features
5 Pure markets Example: electronic share dealing Spot – buyers’ and sellers’ bids clear instantly
6 Barter Examples: www.intagio.com and Barter – buyers and sellers exchange goods. According to the
www.bartercard.co.uk International Reciprocal Trade Association (www.irta.com)
barter trade was over $9 billion in 2002

Source: Adapted and reprinted by permission of Harvard Business Review from table on pp. 2–3 from ‘The all-in-one-market’, by Nunes, P.,
Kambil, A. and Wilson, D., in Harvard Business Review, May–June, 2000. Copyright © 2000 by the Harvard Business School Publishing
Corporation, all rights reserved