Based on the FDI policy guidelines, “Marketplace model of e-commerce means providing of the i . t . platform by an e-commerce entity on the digital and electronic network some thing as a facilitator between seller and buyer.”
The principle feature of this marketplace model would be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for patrons to have interaction having a many sellers onboard to buy an item online. Thus, when a product from amazon is bought, you happen to be actually buying it from the registered seller by it. Consequently the merchandise isn’t directly sold by amazon. Here, amazon is simply website platform which facilitates a meeting area for a person to meets many seller and provide various options and price levels to get a services or products.
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.in to buy books, swiggy.com for ordering food, 1mg.com for medicines etc.
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Anchor Seller as well as a Level Stage
Most of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or even a large enterprise that have entered into privileged relates to them which will help them offer great deals or discounts on the customers. This might add a higher discount on products, FREE shipping, compensation for sales returns etc. The losses incurred on these deals /services are compensated from the Marketplace Player within pre-agreed arrangement.
You regularly see that some items are available on the site at 40% -60% discounts that’s even a hardship on producer to make available. You regularly see that you will find 40-50 sellers to get a buy books online india but excepting one anchor seller, no one is able to make available such exciting discounts or offers. They even mask other seller completely and corner almost entire demand for these products, thereby also frustrate these multiple genuine sellers to arrive at absolutely free themes using their honest pricing offers.
Just about all e-commerce players are saved to the verge of re-discovering their business models and desire to become profitable sooner. Truth be told, none are already capable of seeing a cent in profit to date. Many big and promising e-commerce and unicorn players have perished on account of unsustainable losses and many are already sold out to other people. Year 2017 would see a lot more to fasten belts and go on to solve this riddle lest they perish in the race on the survival of the fittest.
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