In the sell-side marketplace model, organizations attempt to sell their products or services to other organizations electronically from their own private e-marketplace Web site and/or from a third-party Web site. This model is similar to the B2C model in which the buyer is expected to come to the seller’s site, view catalogs, and place an order. In the B2B sell-side marketplace, however, the buyer is an organization.

The key mechanisms in the sell-side model are forward auctions and electronic catalogs that can be customized for each large buyer. Sellers such as Dell Computer use auctions extensively. In addition to conducting auctions from their own Web sites, organizations can use third-party auction sites, such as eBay, to liquidate items.

The sell-side model is used by hundreds of thousands of companies. It is especially powerful for companies with superb reputations. The seller can be either a manufacturer, a distributor, or a retailer. The seller uses EC to increase sales, reduce selling and advertising expenditures, increase delivery speed, and lower administrative costs.

The sell-side model is especially suitable to customization. Many companies allow their customers to configure their orders online. For example, at Dell, you can determine the exact type of computer that you want. You can choose the type of chip, the size of the hard drive, the type of monitor, and so on. Similarly, the Jaguar Web site allows you to customize the Jaguar you want. Self-customization greatly reduces any misunderstandings concerning what customers want, and it encourages businesses to fi ll orders more quickly.