According to the FDI policy guidelines, “Marketplace style of e-commerce means providing of an i . t platform by an e-commerce entity with a digital and electronic network some thing as a facilitator between buyer and seller.”
The key feature of this marketplace model would be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for purchasers to activate having a large number of sellers onboard to get something online. Thus, every time a product from amazon is bought, you might be actually purchasing it from a registered seller by using it. As such the product or service is not directly sold by amazon. Here, amazon is just a website platform which facilitates a gathering spot for a consumer to meets many seller and offer various options and price levels for any product or service.
Whereas the Inventory-led websites have specialized but limited product range as well as the serious customers may signing in about bat roosting website for any 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 and a Level Playing field
The majority of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or possibly a large enterprise who’ve applied for privileged relates to them which assists them offer cheap deals or discounts towards the customers. This will likely incorporate 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.
It’s easy to see that some merchandise is available on your website at 40% -60% discounts that’s even hard for the producer to offer. It’s easy to see that you can find 40-50 sellers for any buy comic 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 requirement for they, thereby also frustrate these multiple genuine sellers to succeed in the shoppers making use of their honest pricing offers.
Nearly all e-commerce players are stored on the verge of re-discovering their business models and desire to become profitable sooner. The fact is, none have already been capable of seeing a cent in profit up to now. Many big and promising e-commerce and unicorn players have perished because of unsustainable losses and several have already been sold-out to other people. Year 2017 would see more to fasten belts and pursue to solve this riddle lest they perish in the race towards the survival in the fittest.
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