Online Intermediaries make transactions between third parties easier through allowing access, host and transmit index content.
They play a very important role in business. They help maintain a connection between buyers and sellers.
For instance if someone wants to open a small business on the internet, he will not be able to attract a lot of customers without the use of an online intermediary such as e-bay where he can actually make an account and display his products and therefore making things easier for him which actually affects his business since it brings him more customers.
There are a lot of types for online intermediaries such as e-commerce intermediaries.
E-commerce intermediaries have one very important characteristic. Not only they connect Buyers and suppliers but also they allow for internet transactions to be performed.
They do provide B2B as well as B2C proposals.
Some intermediaries or Internet service providers deliver their own
Content. Some e-commerce platforms sell goods that they take title to.
An important question that may rise is if e-commerce and e-business are the same.
Both are Different since in e-commerce ICT (Information and communication technology) is in interactions between firms or firms and individuals while in e-business it is used to enhance a business.
-There are different types of e-commerce among them are B2B and B2C.
B2B (Business to Business) is actually between companies
B2C (Business to Consumer) such as customer buying goods etc..
-Another important question is what is actually fueling the e-commerce?
There are three important things:
1) Economic forces (resulting from lowering the communication costs)
2) Market forces (Corporations get more encouraged to use e-commerce to capture international markets)
3) Technology forces (More efficient communication)
-Let us take a look on how is the internet relevant to e-commerce.
We all know that the internet allows people to connect together thus it allows people or businesses to show and sell their products online which allows others to view them and lead them to purchase.
-We now take a look at the advantages of e-commerce on businesses.
1) Reducing cost
2) Mass customization: for instance if someone wants to buy a specific computer, the applications actually include easy to use ordering systems to fit each ones unique needs.
3) Network production: Reduction in costs and selling add-on products.
-For consumers e-commerce makes information easier and accessible which makes for a better decision for consumers on what they really need. For example when buying a computer, details are provided as well as the price which lets you see if its fits both your budget and your needs.
-How does e-commerce link workers, suppliers, customers together?
A supply chain management is needed.
A SCM is divided into three linked and important things.
1) Product flow: The movement of goods from the supplier to the customer.
2) Information flow: status of delivery.
3) Finance flow: everything that is related to payment.
In my opinion I can see that online intermediaries are really important , they do play a very huge role in business , helping develop businesses and benefits both the suppliers and the consumers.
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