According to the FDI policy guidelines, “Marketplace type of e-commerce means providing associated with an it platform by an e-commerce entity with a digital and electronic network to behave being a facilitator between buyer and seller.”
The key feature of the Marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give you a platform for customers to interact having a great number of sellers onboard to acquire an item online. Thus, each time a product from amazon is bought, you’re actually acquiring it coming from a registered seller with it. As a result the product is just not directly sold by amazon. Here, amazon is simply website platform which facilitates a meeting spot for the consumer to meets numerous seller and gives various options and value levels for a service or product.
Whereas the Inventory-led websites have specialized but limited selection and also the serious customers may log in to these website for a specific selection, such as 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 as well as a Level Game
Almost all of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or a large enterprise who have applied for privileged relates to them which will help them offer great deals or discounts for the customers. This could will include a higher discount on products, Free freight, compensation for sales returns etc. The losses incurred on these deals /services are compensated from the Marketplace Player with a pre-agreed arrangement.
You regularly see that some items are positioned on the web site at 40% -60% discounts that’s even a hardship on the producer to make available. You regularly see that you can find 40-50 sellers for a children books but excepting one anchor seller, fat loss to make available such exciting discounts or offers. They even mask other seller completely and corner almost entire need for these items, thereby also frustrate these multiple genuine sellers to succeed in the customers using honest pricing offers.
Almost all e-commerce players are on the verge of re-discovering their business models and dream to become profitable sooner. The fact is, none are already capable of seeing a cent in profit thus far. Many big and promising e-commerce and unicorn players have perished as a result of unsustainable losses and many are already sold out to other people. Year 2017 would see additional to lock belts and go on to solve this riddle lest they perish inside the race for the survival from the fittest.
For details about children books see this useful web site: look at this now