A virtual marketplace, also known as an electronic marketplace (EMP), is a term used in the field of e-business. It represents a virtual place/market space within a higher-level data network within which virtual business transactions are carried out, which can be supported by the marketplace operator (as a third party) at any stage of the coordination process with the help of information-oriented value-added activities. Virtual marketplaces are particularly common in the B2B (see also e-procurement) and C2C sectors. A prominent example from the C2C sector is eBay. The online retailer Amazon is also a marketplace. Experts now assume that the turnover of marketplace sellers on Amazon is now greater than Amazon’s own sales. A large number of EMPs in the field of B2B can now be found in the automotive industry. An online marketplace is a service that allows consumers to enter into distance contracts with other traders (B2B) or consumers (B2C) through the use of software operated by or on behalf of the trader, including a website or application.
The marketplace operator fulfils an overview function, coordinates network effects (see synergy, economies of scope) and brings supply and demand together in a qualitative and quantitative manner. Economies of scope arise not only between the transaction partners involved, but also between all affiliated actors. The operator of the virtual marketplace takes care of the technical processing. The prerequisite for participation is compatible interfaces for all or for all marketplace participants. The services offered provide continuous support for procurement processes as a result of Internet technologies. By automating manual procurement processes and streamlining the subcontracting process, the cost of procurement processes is reduced. The services of a virtual marketplace can range from demand coverage and supplier management to product development.
The elements of electronic marketplaces are of a technical and business nature, – technical elements include search functions, encryption; These include catalogue and matching systems, auctions, tenders, information exchanges, financial and logistics services.
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An important criterion for the classification of a marketplace is that communication between many suppliers and customers takes place on it. In contrast, pure purchasing platforms are understood as a communication between one or a few customers and many providers. E-procurement systems/purchasing platforms see their benefits in increasing the efficiency of procurement processes through electronic support, while marketplaces see their benefits in network effects along the entire value chain.
A theoretical distinction between marketplaces and portals, which is difficult to maintain in practice, relates to the delimitation of functions and objectives. Portals define themselves with the aim of initiating business by providing information to users. Marketplaces, on the other hand, focus on holistic processing and bundling of purchasing, production and sales processes.
In many cases, however, one observes a blurred representation of the terms. Sometimes there is the possibility of a portal solution within a marketplace. The marketplace offers the virtual and technical space for several independent portals within it, which can be reached via the infrastructure of the marketplace. Each portal can have its own user-specific characteristics and applications and is a “small” marketplace in itself. For end customers, shopping apps are increasingly being offered, which can be used to make targeted online purchases in certain marketplaces using mobile devices.
In the development of such process portals, internal and inter-company applications can still be connected. A uniform information architecture is used to communicate between the OEM and suppliers, end customers and employees. In-house integration functions as a group-wide employee portal, whereas inter-company integration is intended to connect processes with customers and suppliers via a collaborative infrastructure. To this end, all areas that are built on the basis of cooperation will be integrated into the portal.
