While all marketplaces are different, the required functionality of a robust exchange has some basic rules. First, there needs to be a discovery mechanism that lets sellers make themselves available to buyers, while helping buyers pinpoint relevant suppliers. This mechanism must also offer a way to verify the identity of a trading partner. The marketplace then needs to provide a price-negotiation method. Such methods include auctions, bids and reverse auctions.
Exchanges require a variety of negotiation methods, to accommodate different business needs.
The marketplace should provide robust data-handling capabilities, to let companies seamlessly transfer important information, such as technical specifications. There also must be a mechanism to track procurement-process forms, such as invoices. Finally, tools that aid in fulfillment, such as order-tracking applications, complete the exchange, though any number of specialized ancillary capabilities may be offered. An open setup also lets participants spread out the technology costs. A host doesn't have to provide all functions for an exchange when other companies can provide community support, payment services or the like.