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Commercial (trading) mechanism



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[Chaffey, Dave] Digital business and E-commerce 2nd book

Commercial (trading) mechanism

Online transaction mechanism of Nunes et al. (2000)

1  

Negotiated deal Example: can use similar 

mechanism to auction, as on Commerce One  

(www.commerceone.net)

Negotiation – bargaining between single seller and buyer. 

Continuous replenishment – ongoing fulfilment of orders 

under   pre‑  set  terms



2  Brokered deal Example: intermediaries such as 

Compare The Market (www.comparethemarket.com)

Achieved through online intermediaries offering auction and 

pure markets online



3 Auction Examples: C2C: eBay (www.ebay.com); 

B2B: Industry to Industry (http://business.ebay.

co.uk/)

Seller auction – buyers’ bids determine final price of sellers’ 

offerings. Buyer auction – buyers request prices from multiple 

sellers. Reverse – buyers post desired price for seller acceptance




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