Marketplace
Virtual marketplaces (“e-marketplaces”) are electronically managed institutions for the exchange of services. They provide the institutional framework for transaction processes between suppliers and consumers and compete with other distribution and communication media. Furthermore, virtual marketplaces have a coordination function vis-à-vis the producers and consumers operating in them by providing the virtual trading space for transaction processes. However, these transactions are not influenced by the respective provider of the e-marketplace, but are only supported if necessary. Another feature of virtual marketplaces is their emergence. Unlike real markets, virtual marketplaces are always made available via an operator.
Advantages of a virtual marketplace/marketplaces
Unlike real marketplaces, e-marketplaces can take advantage of computer and information technology. Thus, virtual marketplaces are independent of local and temporal restrictions and can offer their users unrestricted trading, regardless of physical and temporal limitations. Suppliers and buyers no longer meet in real marketplaces, but use computer and information technology to conduct a namely the respective web address of the operator, business partners are now sought (information), the respective trade design is determined (communication) and the business transaction is formulated (transaction). Independent of their respective location, each market participant can access the virtual marketplace from any point in the data network (e.g. by mouse click on the home PC). This access can take place at any time, since the e-marketplace is a permanently open and available facility. These transactions can be supported by the operator of the virtual marketplace through provided offers in every phase of the transaction (e.g.: payment via PayPal). The operator can increase the use of its offer by providing, for example, a variety of different payment methods for the connection of the virtual transaction (e.g.: online bank transfer, PayPal).
Added value of virtual marketplaces:
Virtual marketplaces enrich the market in the form of increased market transparency (price and product discovery) for the consumer and, on the producer’s side, for finding and expanding new sales channels as well as a possible increase in market share. This added value is further enhanced by the elimination of higher transaction costs (use of electronic processing by buyers and sellers).
