Brokers are market-makers: They bring buyers and sellers together and facilitate transactions.
Brokers play a frequent role in business-to-business (B2B), business-to-consumer (B2C), or consumer-to-consumer (C2C) markets.
Usually a broker charges a fee or commission for each transaction it enables.
The formula for fees can vary. Brokerage models include:
Marketplace Exchange -- provides a full range of services covering the transaction process,
from market assessment to negotiation and fulfillment, for a particular industry. The exchange can
operate independently of the industry, or it can be backed by an industry consortium.
The broker typically charges the seller a transaction fee based on the value
of the sale. There also may be membership fees.
Business Trading Community -- or vertical web community, is a comprehensive source of information
and interaction for a particular vertical market. A community may contain product information, daily
industry news and articles, job listings and classifieds.
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Buy/Sell Fulfillment -- customer specifies buy or sell orders for a product or service,
including price, delivery, etc. The broker charges the buyer and/or seller a transaction fee.
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Demand Collection System -- the patented "name-your-price" model pioneered by Priceline.
Prospective buyer makes a final (binding) bid for a specified good or service, and the broker
arranges fulfillment.
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Auction Broker -- conducts auctions for sellers (individuals or merchants).
Broker charges the seller a listing fee and commission scaled with the value of
the transaction. Auctions vary in terms of the offering and bidding rules. Reverse
auctions are a common variant.
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Transaction Broker -- provides a third-party payment mechanism for buyers and
sellers to settle a transaction.[fsbohouse.com]
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Bounty Broker -- offers a reward for finding a person, thing, idea, or other desired,
but hard to find item. The broker may list items for a flat fee and a percent of the reward
for items that are found.
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Distributor -- is a catalog operation that connects a large number of product manufacturers
with volume and retail buyers. Broker facilitates business transactions between franchised distributors
and their trading partners.
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Search Agent -- is an agent (i.e., a software agent or "robot") used to search-out the price and availability
for a good or service specified by the buyer, or to locate hard to find information.
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Virtual Mall -- hosts online merchants. The Mall typically charges setup, monthly listing,
and/or per transaction fees. More sophisticated malls provide automated transaction services and
relationship marketing opportunities. |
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