E-commerce Intermediation Theory And Case Studies

Theoretically, online transaction is a convenient, highly effective, economical business model. Recently there are a lot of online companies that are at loss in China. From particularity of online trade, various transaction service demands caused by both sides of transaction in the online market are analyzed in this ariticle. A new online intermediary definition is proposed.The reasons of adverse selection in the online market and the functions that cybermediaries perform in solving adverse selection are studied. Then, the principe that online intermediaries can solve the problem of adverse selection is proved.According to the operation model of network quality intermediaries, the existence necessity of online intermediraies is analyzed from utilities that both sides of transaction abtained.Then a model based on the market for "lemon" is created to analyze the reputation mechanism set up by cybermediaries in the online market. It is the nature of repeat purchaseing that forces producers to weigh between the long-term and short-term payoff. Some measures can be taken by cybermediaries to force producer to supply market with goods with high quality.The functions of cybermediaries that perform in the online market are analyzed. Cybermediaries can provide not only functions of traditional intermediaries, but also some new functions. Cybermediaries can be classified into eight categories according to different service demands of both sides of transaction.Four essential factors of Cybermediaries business model are summarized, that is market localization, value manifested, cost constitution and the source of income. Business model of eight online intermediaries talked above is analyzedThe definition of service products of e-commerce is put forward and the characteristics of them are analyzed. Some typical service products of e-commerce are analyzed from business model. At last, a conclusion that service products of e-commerce which are well-rounded usually composed of many online intermediaries service and many enterprises participate in, which brings the complexity of benefit assignment is elicited in this paper.