Based on the FDI policy guidelines, “Marketplace type of e-commerce means providing associated with an i . t . platform by an e-commerce entity on the digital and electronic network to do something as being a facilitator between seller and buyer.”
The primary feature of the Marketplace model is that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give you a platform for purchasers to have interaction which has a large number of sellers onboard to acquire a product online. Thus, each time a product from amazon is bought, you are actually acquiring it from a registered seller from it. As a result the merchandise just isn’t directly sold by amazon. Here, amazon is only a website platform which facilitates a gathering spot for a person to meets many seller and offer various options and cost levels for the services or products.
Whereas the Inventory-led websites have specialized but limited product selection and also the serious customers may sign in to those website for the specific product selection, including 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 Playing field
Most of the marketplace players have anchor sellers on panel, who’re either their subsidiary entities or perhaps a large enterprise who’ve applied for privileged handles them which helps them offer cheap deals or discounts for the customers. This may incorporate a higher discount on products, Free freight, compensation for sales returns etc. The losses incurred on these deals /services are compensated through the Marketplace Player under a pre-agreed arrangement.
It’s easy to see that some items are available on the web site at 40% -60% discounts that is even challenging for the producer to make available. It’s easy to see that you will find 40-50 sellers for the buy books online Chennai but excepting one anchor seller, no one is able to make available such exciting discounts or offers. They even can mask other seller completely and corner almost entire need for they, thereby also frustrate these multiple genuine sellers to arrive at the customers can use using honest pricing offers.
Almost all e-commerce players are saved to the verge of re-discovering their business models and dream to become profitable sooner. The fact is, none happen to be able to see anything at all in profit so far. Many big and promising e-commerce and unicorn players have perished due to unsustainable losses and lots of happen to be soldout to others. Year 2017 would see a lot more to lock belts and continue to keep solve this riddle lest they perish from the race for the survival with the fittest.
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