In line with the FDI policy guidelines, “Marketplace label of e-commerce means providing of an i . t platform by an e-commerce entity with a digital and electronic network some thing like a facilitator between seller and buyer.”
The key feature of the Marketplace model could be 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 purchase an item online. Thus, each time a product from amazon is bought, you are actually buying it from your registered seller from it. Therefore the product just isn’t directly sold by amazon. Here, amazon is just a website platform which facilitates a celebration area for someone to meets numerous seller and provide various options and value levels for the services or products.
Whereas the Inventory-led websites have specialized but limited product range and also the serious customers may sign in to the telltale website for the specific product range, including caratlane.com for precious jewellery, booknest.in to buy books, swiggy.com for ordering food, 1mg.com for medicines etc.
Buy books online …
Anchor Seller and a Level Stage
Most of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or possibly a large enterprise who have created privileged works with them which assists them offer money saving deals or discounts for the customers. This may include a higher discount on products, Free freight, compensation for sales returns etc. The losses incurred on these deals /services are compensated by the Marketplace Player within pre-agreed arrangement.
You often realize that some goods are available on the website at 40% -60% discounts that’s even challenging for the producer to provide. You often realize that you will find 40-50 sellers for the online book store but excepting one anchor seller, fat loss to provide such exciting discounts or offers. They will mask other seller completely and corner almost entire demand for these items, thereby also frustrate these multiple genuine sellers to arrive at the customers using honest pricing offers.
Nearly all e-commerce players are saved to the verge of re-discovering their business models and aspire to become profitable sooner. The truth is, none happen to be able to see anything at all in profit to date. Many big and promising e-commerce and unicorn players have perished as a result of unsustainable losses and many happen to be sold-out to others. Year 2017 would see many more to lock belts and go on to solve this riddle lest they perish within the race for the survival with the fittest.
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