Marketing functions and B2C e-marketplaces: An exploratory analysis

Abstract

Business-to-consumer e-marketplaces are an important and fast-growing distribution channel. Nevertheless, there is a lack of literature that attempts to describe and classify business-to-consumer e-marketplaces and to analyze their role in the distribution channel. This article seeks to address this deficiency and to add clarity to our understanding of these two-sided platforms. A new innovative marketing functions concept is developed: the PILT framework. It consists of four main functions—product, information, logistics, and transaction—and ten subfunctions. Applying this framework reveals that business-to-consumer e-marketplaces are infomediaries, completely fulfilling only information functions. All other functions must be managed by the sellers themselves or outsourced to other intermediaries such as logistics companies or banks. A case study of Amazon and Walmart Marketplace is presented to further illustrate the PILT framework. It reveals that Amazon Marketplace fulfills more marketing functions than Walmart Marketplace, which may be an important success factor for B2C e-marketplaces.