In accordance with the FDI policy guidelines, “Marketplace type of e-commerce means providing of an i . t platform by an e-commerce entity on a digital and electronic network to act being a facilitator between seller and buyer.”
The principle feature of this marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give you a platform for clients to activate with a large numbers of sellers onboard to purchase a product or service online. Thus, each time a product from amazon is bought, you might be actually acquiring it coming from a registered seller with it. As such the product isn’t directly sold by amazon. Here, amazon is only a website platform which facilitates a celebration area for the consumer to meets many seller and provide various options and value levels to get a products or services.
Whereas the Inventory-led websites have specialized but limited product range and the serious customers may signing in to those website to get a specific product range, such as caratlane.com for precious jewellery, booknest.directly into buy books, swiggy.com for ordering food, 1mg.com for medicines etc.
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Anchor Seller as well as a Level Arena
Almost all of the marketplace players have anchor sellers on panel, who are either their subsidiary entities or possibly a large enterprise that have entered into privileged works with them that helps them offer bargains or discounts towards the customers. This might add a higher discount on products, Free postage, compensation for sales returns etc. The losses incurred on these deals /services are compensated from the Marketplace Player with a pre-agreed arrangement.
It’s easy to see that some items are positioned on the site at 40% -60% discounts that is even hard for the manufacturer to offer. It’s easy to see that you will find 40-50 sellers to get a competitive books but excepting one anchor seller, no one is able to offer such exciting discounts or offers. They even can mask other seller completely and corner almost entire need for these items, thereby also frustrate these multiple genuine sellers to succeed in the customers with their honest pricing offers.
Just about all e-commerce players take presctiption the verge of re-discovering their business models and aspire to become profitable sooner. The fact is, none have already been capable of seeing a penny in profit thus far. Many big and promising e-commerce and unicorn players have perished due to unsustainable losses and lots of have already been soldout to other people. Year 2017 would see additional to fasten belts and pursue to solve this riddle lest they perish inside the race towards the survival in the fittest.
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