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What is a private electronic market?

Private electronic market

This refers to a network of pre-qualified buyers and sellers who are linked in a market via the internet. The aim is to provide competition on prices while also allowing flexibility on proposed deals.

Where have you heard about a private electronic market?

You may not have heard of this type of market place, unless you have been personally involved in one, either as a buyer or seller. The term is often abbreviated to PEM.

What you need to know about private electronic markets.

The idea of a PEM is to combine elements of open and closed markets. The former is a transaction where there is no pre-existing relationship between buyer and seller, for example an eBay transaction. A closed market, such as a sealed tender bid for services, is conducted completely in private, meaning competitors can't compare their bids and adjust accordingly. A PEM aims to work for both sellers and buyers, with competition providing the best possible price for the seller, while the flexibility allows the buyer to negotiate exactly what they want.

Find out more about private electronic markets.

A PEM can allow a potential buyer to negotiate on aspects such as payment terms on a deal.

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