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Horse Racing System

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Grow Your Business Using B2B Emarketplace - Part I


If you are a small to medium size company and selling or planning to sell products and services over the Net and still did not try out emarketplaces, you are simply loosing a great opportunity!

Research firm eMarketer predicts that worldwide B2B ecommerce revenues will surpass US$ 1.4 trillion by the end of 2003. In the United States alone revenues will total US$ 721 billion. By 2004, the US B2B ecommerce revenues are expected to reach US$ 1.01 trillion and studies show that a significant portion of these transactions will be conducted through emarketplaces.

What is an Emarketplace?

In a broader sense, business to business emarketplace is an online platform where buyers and sellers come to communicate, collaborate and make business transactions. Emarketplace caters a large number of participant companies as a community. The main objective of an emarketplace is to create a venue, filled with features that allow members to efficiently conduct significant portion of business processes on the Net. Emarketplaces are also known as B2B exchanges.

Types of Emarketplaces

There are varieties of emarketplaces available on the Internet to suit your company's specific need.

Public:
These emarketplaces are open to all companies. Virtually, anybody can become a member and conduct business through these marketplaces.

Private:
Membership is restricted and owners of the marketplace decide according to which criteria they will select participants. For example: a large trading company can have its own emarketplace limited to its buyers or suppliers only.

Horizontal:
If the emarketplace works with a large numbers of products and services from different industries, it is called a horizontal marketplace.

Vertical:
Industry specific emarketplaces are called vertical markets. An emarketplace, working solely with suppliers and buyers of cars is an example of this kind of marketplace.

Can your company benefit from an Emarketplace?

Whether you are primarily a buyer or a supplier, participation in emarketplace can generate enormous benefits to your company - both in cost savings and productivity increase.

Benefits that you can have as a buyer

Automate the purchasing procedure
Emarketplaces allow you to send request for quotes to a prospective supplier, receive quotes, send purchase orders and receive invoices within the marketplace system. You can virtually consolidate all your procurement processes in one single place. This process of automation brings significant efficiency to you and saves your transaction processing cost. According to Aberdeen Group, a research company, thanks to B2B procurement systems, businesses can reduce these processing costs up to 70%.

Comparison shopping at its best
Since you can see all the suppliers of a particular product, that you are planning to buy, in one place, it is easy for you to see which one among the suppliers suits you best in terms of quality, delivery time, geographical location, costs etc.

Reduce sourcing time cycle
Most emarketplaces allow you to select multiple offers from different suppliers and create purchase orders in one shot and send. Since you handle all your procurement related correspondence from a consolidated working page, you can see right away answers to requests for quote, invoices, etc. This helps you react instantly and reduce you time in document processing.

Community participation
You can receive valuable feedbacks from other fellow buyers, receive industry-related information, build new partnerships and use the networking ability of a community.

Real time access to current product information
Current information of a product is vital for an accurate buying decision. 24 hours access to supplier's catalog helps you getting most up-to-date information any time you need it.

Control rogue spending
Consolidated and automated procurement and approval method stops maverick buying in a company.

Benefit that you can have as a seller

New sales channel
By becoming a member of an emarketplace, you open a low cost, highly functional and easy-to-use sales channel for your company. You expose your company to a new targeted audience that otherwise would have been untapped to you.

Low customer acquisition cost
Your mere presence in the emarketplace might bring you new customers. Since the buyers come to emarketplace themselves your cost of getting customers through this channel is relatively low in comparison to other traditional channels.

Improve customer service
Ability to have constant interaction through the emarketplace allows you to serve your customers better. You can track the whole ordering process from payment to delivery and bring greater efficiency in customer service.

Efficient information sharing method
When needed, you can instantly update your catalog and inform your customers about changes. Whether you are launching a new product or having a web seminar, through emarketplace you can share the information more efficiently.

Reduce supply chain cost
According to eMarketer, automated supply chain process through emarketplaces can reduce your overhead costs 20% to 40%.

You may ask, if participation in an emarketplace is so beneficial, why companies are not flocking to emarketplaces.

The slower adoption can be blamed on various inadvertent factors:

  • Many companies had fall short to generate significant sales from their own websites and look at emarketplaces with a dose of skepticism. But as studies show ecommerce endeavors fail, mainly, due to lack of proper planning and marketing, as many site managers take the attitude that build-it-and-they-will-come.
  • Many conservative suppliers claim that their business depends on close relationship with local buyers. In reality, you can also get access to local untapped market through emarketplaces. Another aspect - you can bring efficiency to your business by co-adopting an emarketplace along with your buyers.
  • Many elderly executives are not very tech-savvy and afraid of adopting new technologies considering them too complex. In reality, e-business is virtual implementation of real life business processes and not very difficult to embrace.
  • Fear of price shopping by buyers is another factor, why suppliers are reluctant to use emarketplaces. The ability of emarketplace to emphasize all characteristics of the product in product content and demonstrate buyer-specific pricing should eliminate this fear.
  • Many, mistakenly, consider that participation cost in emarketplace is very high and will hurt their bottom line. The expenses related to emarketplace membership are, usually, a mere fraction of what you can save from the use of its different features.

What to look in an Emarketplace?

As an online venue, where participants expect to conduct substantial part of their business processes, emarketplace has a large range of useful features:

  • Product catalog based on an industry-standard classification system
  • Product search capability within the marketplace and e-catalog
  • Buyers and sellers search capabilities
  • Supply chain process, i.e. request for quote, quotation, purchase order, billing system, etc.
  • Directory of members
  • Shipment tracking
  • Simple system of adding and editing products
  • Simple offer posting system
  • Ability to promote products with special offers, sales, and discount

Apart from these, some emarketplaces boast other interesting features like auction and reverse auction, new product listing notification, business forum, XML interface, Internal messaging system. Naturally, implementation of these features may vary significantly emarketplace to emarketplace.

Where to look for Emarketplace?

The best place to find an extensive list of emarketplaces is the B2B directory site: http://www.bocat.com.

The open directory project DMOZ has a good list of emarketplaces. However, not all listings in both of these places are, in reality, emarketplaces. Some of them are simple trade boards. This list is located at http://dmoz.org/Business/E-Commerce/Marketplaces/

Yahoo! directory is not organized well enough to locate emarketplaces. They are scattered under the subcategories: Vertical marketplace builders, Trade directories and even Trade.

Forbes magazine has a quality list of many B2B companies including some emarketplaces. You will find the list at: http://www.forbes.com/bow/b2b/main.jhtml

To be continued in next issue: Selecting the right Emarketplace.

Nowshade Kabir is the founder, primary developer and present CEO of Rusbiz.com. A Ph. D. in Information Technology, he has wide experience in Business Consulting, International Trade and Web Marketing. Rusbiz is a Global B2B Emarketplace with solutions to start and run online business. You can contact him at mailto:nowshade[at]rusbiz.com, http://ezine.rusbiz.com, http://www.rusbiz.com




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"What a system! Very well researched method with sensible principles!"
T. May, East Lothian-UK



"I used to subscribe to a £300 monthly tipping service, now I got my own picks with even better ROI at bargaining price. Hope this horse racing system goes well! Good luck"
S. Lewis, Sheffield-UK



"Having purchased this horse racing system and contacted the the system provider on a few occasions to confirm I have the correct selection I have found him very helpful and sincere and I am sure I am now on my way to a TAX free 2nd income ..."
J. Ritchie, Edinburgh - UK



"I bought yesterday your Golden Star horse racing system and let me tell you, I'm blown away. The concept is great! So much, that I'm sitting now and wondering why I punish myself beside computer all day. OK, thanks again - I'm in seventh heaven."
D. Gentle, Peterborough - UK



"Congratulations once again on a 100% week. I could write for hours about how impressed I am at this horse racing system, but I don't need to because you know the effort you put on it ;-)"
B. More, Worcester - UK



"I only recently purchased and started using the Golden Star System, I have to say the profits and service have been first class, emails are answered promptly and I couldn't ask for more!"
Michael White, Ipswich - UK



"Always busy at my main job and didn't like to bet again but I was so lucky decided to buy this superb horse racing system. Nothing can deny the profitability of it. Money just keeps coming into my Betfair account. I'm asking my 9th years old son to do it for me! Such a simple and efficient method"
M. Williams, Arbroath - UK



"Why didn't I think of this method before? I've never noticed such invaluable info. You have an amazing approach indeed. Highly recommended. Well done"
R. Mattingley, Wokingham - UK



"I'd let you know that either I've been incredibly lucky or your system is far too good to be on the market! I can't keep sneaking off to my computer every day. Sorry to be cheeky, but I'm on a roll now, my bank has doubled now and I have every confidence to double my stake WOW! Your system is a genuine one based on sound thinking and it works, anyone who can't make money from it just shouldn't be gambling!"
Steven Trindall, Doncaster - UK



"Excellent betting system! If I were you, I would sell this at much higher price. Good luck with your business"
M. Cornick, Martins Heron - UK



"I bought your system about a month and a half ago from you and this message is just to say thank you for a great system. Like anything in life the system as it's up's and down's but never losses it's 60%+ strike rate. I have bought a lot of so called 80%+ strike rate systems before but yours is the only system that works for me."
Steven Trindall, Doncaster - UK



"No broken promises and no unrealistic claims. You get exactly what it says. Great horse racing system"
T. Charlton, Nantwich - UK



"I just wanted to let you know that I have been using your system for a couple of months now and the results have been exactly as you predicted. I would also like to thank you for your excellent service since I purchased the system. You have answered all of my queries promptly and with patience. Please let me know if you ever create another system as I will want to be first in the queue"
Mark Johnson, Markfield - UK



"Briliant horse racing system that makes me foresee the race. Couldn't wait to put real money"
S. Reid, Nottingham - UK



"Paper test 6 days, only 1 slightly losing day, the other 5 are winning days! Great horse racing system!Thanks for sharing"
T. OBrien, Warminster-UK



"After purchasing many systems that you see online I knew that there would have to be one out there that actually worked. Needless to say I finally found this system that produces winner after winner and if you are a normal punter like myself and you want to start getting your money back of the bookie then I highly recommend that you purchase this horse racing system. You won't be disappointed"
Brian Lawless - Ireland