E- Commerce & IT Essay Example | Topics and Well Written Essays - 1500 words

E- Commerce & IT - Essay ExampleElectronic marketplaces are the new online trading network platform that links the sellers with the buyers together for exchanging goods and services, without any mandatory face to face interaction during spot trading. Most of the EMs are two-way networks or collaborative in nature. When different companies working in same line of business meet at a place, which are willing to exchange goods to put customers, we get an association of market places. Such market place is called the electronic market if the parties to transaction mainly communicate online or through some semiprivate networks.The concept of EM has its origin from Electronic commerce, the fundamental purpose of which is to execute transactions that are supported electronically. Some of the top e-commerce developments of last decades include eBay, Amazon, Google Ad Words, PayPal, etc. The business model may be B2B, B2C, or C2C. In all these models, automating transactions drastically red uces the amount of paper works and need for homophile intervention which consequently authorizes to minimization of overall cost of the firms (Andreini, 2003, pp.15-16). Any transaction involves the exchange of goods and services and the electronic medium is used to keep record of much(prenominal) transactions, such as inventory, track location of goods despatched, quantity, price, etc. Online transactions that take place at the point of sale need to critically focus on time sensitive transactions whose delay might cause huge losses for companies (Huang, Wolf, and Sycara, 2001, pp. 2-9). The evolution of internet increased the speed of data transfer and, hence, provided an apotheosis platform for conducting EDI (Electronic data Interchange) transaction and E-commerce. Challenges for the Collaborative Electronic Markets When any business plans to launch the Electronic market, its main objective is to bring the buyers and sellers together through a network by realising a need for exchange of goods. But such a business model can sustain in the grand thread only if there is sufficient trust among the business partners on the entire system. Not to mention that security, reliability and privacy is a must for any categorisation of online transaction. These issues must be addressed very seriously if the company is planning to sustain (Wielki, 2002, p.129). The Electronic market has huge scope form demand planning, analysing and forecasting, to publish chain management, logistics and demand fulfilment. The business partners do not only look for cost efficiency but also expect specialization from Electronic Market companies (Furrenr and Sudharshan, 2001, p.127). The cost consideration has to be taken into account along with the timely delivery. This is because very often it is found that carrying goods for third party reduces direct cost per klick of running the trucks for the companies but at the same time it increases time of delivery by spending significant a mount time on roads. Many e-Markets gift only focused on the cost aspect ignoring the time which ultimately lead to their downfall. Very often the larger-than-life ambition, lack of clearly defined long term goals, distrust among partners, reluctance of the suppliers to join common platform also lead to failure of e-business models (Gupta, 2007, p.4). In order for the e-commerce companies to sustain in the competitive market, it require to specialize on a particular field and then expand the business gradually with time. Thus, the mentality of entrepreneurs of trying to achieve too much in less time may ultimately take their ship down and shorten their long term sustainability. Managing Conflicts in e-Marketplace The emergence of Electronic Marketplace has lead