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Marketplace Vs Community-Based Platform : What’s The Difference ?

 

The global electronic components crisis has led to the rapid expansion and widespread adoption of B2B marketplaces and community-based transaction platforms. These alternative components procurement models are often mistaken for being synonymous, but in reality, there are many key differences. We take a look at the two forms of selling or sourcing components.


What’s A B2B Marketplace?

A B2B marketplace is an online platform for corporate procurement of technology and electronic components. It is an online marketplace that enables corporate buyers to research their options and compare products and offers. It also allows companies to purchase components often in small volumes and with no minimum order quantity (MOQ) requirements.

B2B marketplaces have gained momentum among components manufacturers during the pandemic. Setting up their own marketplace is seen as a sales channel and an opportunity to optimize inventory space by selling off surplus stock or offloading slow-moving inventory.

Another benefit of the B2B electronics marketplace is that it allows OEMs and EMS to increase their range of products to spur growth. An increase in the product base will also result in a more extensive choice for customers. Conrad, for instance, increased its product range by more than three million products in 2019, following the successful launch of Conrad Marketplace.

However, B2B marketplaces are not without challenges. Since B2B e-commerce is essentially an omnichannel selling process, a key struggle is the consistency of product information across sales channels. For OEMs, this can lead to missed sales opportunities, incorrect products purchased, refunds and an overall negative manufacturer-supplier relationship.

Interestingly, companies are aware that inconsistent sales processes are an issue — and have been investing in fixing it. However, integrating product management solutions across different sales channels require a significant financial outlay. Many of these operating and order fulfilment cost increases will be passed on to buyers in the supply chain, which explains the premium pricing of B2B marketplaces.

A man who is paying with his credit card


What’s A Community-Based Transaction Platform?

A community-based transaction platform is a unique form of B2B marketplace in that it utilizes the business community as partners to enhance connectivity between each other. It is a platform that brings together buyers and sellers in the electronic components market to trade and also collaborate and share information among business partners.

This concept has accelerated the past 12 months due to pandemic fuelled e-commerce. The global semiconductor shortage has also served as a catalyst for the emergence of community-based transaction platforms as companies seek alternative ways to source components. These platforms are formed to provide an easy, convenient one-stop shop where multiple sellers can gather and offer buyers a curated selection of products.

One such example is AIRENC, an innovative community-based transaction platform for direct buying and selling electronic components at competitive pricing. AIRENC started in 2020 to help OEMs and EMS stabilize their supply chain by limiting emergencies and the financial impact of the bullwhip effect.

The electronic components market is extremely volatile, uncertain and complex. This often prevents component manufacturers from stabilizing their supply chain to increase efficiency and reduce costs. Consequently, this situation heavily impacts a firm’s purchasing and procurement processes with recurring overstock and shortage situations.

AIRENC community-based transaction platform enables OEMs to overcome these challenges by making it easier to sell and buy components on the grey market. The platform offers components manufacturers time and costs savings through quality-proven one-stop shopping and direct contact with partners to foster collaboration.


The Benefits Of Community-Based Marketplace

The obvious benefits of a community-based transaction marketplace for components manufacturers are ease, collaboration and convenience. But there are many other financial and operational benefits as well.

For OEMs and EMS, a community-based transaction marketplace offers a quick and secure way to buy and resell components on the grey market. This allows manufacturers to limit the financial impact of the bullwhip effect. Whether you want to offload slow-moving inventory, overstock items, or obsolete parts, these marketplaces can help maximise your overall sales and distribution strategy.

Another benefit is better forecasting. Companies can gain real-time insights on demand signals by leveraging their connections on the platform. This helps improve collaboration and accuracy in terms of demand forecasting allowing OEMs to constantly assess electronic components trends and better anticipate their supply needs.

AIRENC - An Innovative Way To Sell Or Buy Electronic Components

 

An increasing number of companies are harnessing the power of the AIRENC community-based transaction platform to sell excess/obsolete parts. Others are using the platform to purchase critical parts that are in shortage. You too can take advantage of the platform's strengths in fulfilment, standardised delivery, and immediate visibility to improve your procurement processes.

By using the collaborative platform for these products, AIRENC not only generates revenue and margins for parties involved, but we also open new markets, helping you to reaffirm your market position, open up new revenue streams and attract serious buyers.

AIRENC transaction platform is better than its own marketplace, or any other online marketplace. Why? Because AIRENC offers the above, and:

• An audit of each member meeting the same quality criteria to ensure standardized procurement processes within the AIRENC community.
• The ability to post bids and offers regarding specific electronic components to leverage the power of our community.
Live notifications and dashboard to have immediate visibility on supply and demand according to your needs.
Secure transactions to guarantee payment or issue refunds in the event of a claim.
• A scoring system between members of the AIRENC community providing transparency to build trustworthy relationships.
• An innovative and revolutionary coding system for electronic components to ease transactions within the platform.



Start selling or sourcing components on AIRENC today.

Published: Aug 02, 2021

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