Organizations are increasingly using Internet to conduct business to attain greater speed, reach and efficiency. An entire new class of dynamic e-commerce solutions is quickly overtaking the comparatively static models. Hundreds of new e-marketplaces are emerging, changing the way the business is conducted even in the most traditional industries in India. We are observing the rise of new class of entities e-marketplaces-that will help on-line buyers and sellers find each other. The purpose of this paper is to: (a) provide an overview of e-marketplace trends, growth and opportunity; (b) describe the characteristics of an effective e-marketplace platform; and (c) suggest how market-makers build and run effective dynamic e-marketplace. Issues in e-marketplaces are diverse and the field of industrial environment is so wide that picking the areas was difficult. The author has tried to raise issues which have high relevance at least in theory but certainly with potential for further focused research.

Organizations are increasingly using internet to conduct business with greater speed, reach and efficiency. Despite this, buyers and sellers are still struggling with high transaction costs, complex supply chains and poor communications that characterize traditional trade in many industries.

A whole new class of dynamic e-commerce solutions is quickly taking over the old static models. The Internet age has the potential to leverage its inherent capacity for creating truly interactive communities and markets. These trading communities or e-marketplaces employ a combination of technologies and services to enable buyers and sellers to interact in the dynamic environment and to establish and maintain relationship chain. Business-to-Business e-commerce is poised for a revolution in India and at the forefront are new e-market makers, on-line intermediaries that bring buyers and sellers together in virtual environment to facilitate B-B trade.

It is a direct parallel of the familiar shop and a virtual trading area where deals are struck through a computer screen over a network. The shop front is usually a set of web pages, the shelves represent the catalogue where products are stored and displayed and the warehouse is the server.