In line with the FDI policy guidelines, “Marketplace type of e-commerce means providing of an i . t platform by an e-commerce entity on a digital and electronic network to do something as being a facilitator between seller and buyer.”
The main feature of the Marketplace model would be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give you a platform for patrons to get with a large numbers of sellers onboard to get an item online. Thus, each time a product from amazon is bought, you might be actually purchasing it from a registered seller by it. Consequently the product is just not directly sold by amazon. Here, amazon is just a website platform which facilitates a celebration area for the consumer to meets many seller and provide various options and value levels to get a product or service.
Whereas the Inventory-led websites have specialized but limited product range and also the serious customers may join to the telltale website to get a specific product range, such as caratlane.com for precious jewellery, booknest.straight into buy books, swiggy.com for ordering food, 1mg.com for medicines etc.
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Anchor Seller along with a Level Game
A lot of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or a large enterprise who may have applied for privileged relates to them which helps them offer bargains or discounts towards the customers. This might incorporate a higher discount on products, FREE shipping, compensation for sales returns etc. The losses incurred on these deals /services are compensated through the Marketplace Player within pre-agreed arrangement.
You regularly find that some items are entirely on your website at 40% -60% discounts that is even challenging for the maker to offer. You regularly find that you can find 40-50 sellers to get a medical books but excepting one anchor seller, fat loss to offer such exciting discounts or offers. They even can mask other seller completely and corner almost entire requirement for these items, thereby also frustrate these multiple genuine sellers to succeed in absolutely free themes with their honest pricing offers.
Just about all e-commerce players are on the verge of re-discovering their business models and dream to become profitable sooner. Truth be told, none are already capable of seeing a penny in profit thus far. Many big and promising e-commerce and unicorn players have perished due to unsustainable losses and lots of are already soldout to other people. Year 2017 would see a lot more to lock belts and go on to solve this riddle lest they perish inside the race towards the survival with the fittest.
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