Selecting an eMarketplace
Why use an eMarketplace?

Until now, most eMarketplaces have targeted large companies and specific industry sectors, such as Covisint - which serves the automotive sector.  Increasingly, SMEs are being targeted, as customers for purchasing and sourcing, and as suppliers through membership of existing supply chains - as an alternative to traditional electronic data interchange (EDI), and often via invitation from their large customers.   

The obvious benefit of using an eMarketplace is that it provides the means to reach new customers and trading partners.  With a large Web site, providing a wide range of functionality and information, the eMarketplace is likely to have a bigger budget and more time to spend on marketing and promotion than most SMEs.  The site content is likely to draw in new visitors, particularly in B2B sites focused at specific industries, which could provide new business opportunities.  eMarketplaces are also able to offer a level of convenience which may not be possible for an individual SME to provide - in specialist B2B eMarketplaces, a buyer can purchase from a multitude of suppliers in a single visit - there is no need to leave the site to search for a supplier for each item required, the eMarketplace will have a directory listing with supplier details, and may even offer the ability to purchase products from a range of suppliers in a single transaction.  The functionality an eMarketplace can offer may be beyond the abilities and budget of many SMEs, and by joining, the SME can benefit from the technology without having to make a major investment.

SMEs can also take advantage of eMarketplaces as customers.  Some sites offer SMEs the benefits of bulk buying by consolidating many orders together for quantity discounts, and passing those discounts on to its members.  These sites are particularly useful for items such as stationery and ICT equipment.  They are also useful for comparing prices to check on discounts offered by existing suppliers.  

Many larger companies within established supply chains are considering the use of eMarketplaces to transfer order details and stock/forecasting information as an alternative to EDI.  The benefit of this is that SMEs do not have to invest in expensive EDI links, requiring only an Internet connection and browser to log into an eMarketplace to view/acknowledge orders and forecast information.  Software supplied by the eMarketplace vendor can automatically translate the information into the large company's computer system, and in some cases this information can be sent over the Internet directly into SME computer software without the need for re-keying.