Based on the FDI policy guidelines, “Marketplace style of e-commerce means providing of an i . t platform by an e-commerce entity on the digital and electronic network to behave as being a facilitator between buyer and seller.”
The principle feature of the Marketplace model is that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for clients to interact with a large numbers of sellers onboard to get something online. Thus, whenever a product from amazon is bought, you happen to be actually acquiring it from the registered seller from it. As a result the product is not directly sold by amazon. Here, amazon is simply website platform which facilitates a gathering spot for someone to meets a large number of seller and provide various options and price levels to get a products or services.
Whereas the Inventory-led websites have specialized but limited range of products and the serious customers may log in to those website to get a specific range of products, including 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 plus a Level Playing field
The majority of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or possibly a large enterprise who have applied for privileged deals with them that helps them offer great deals or discounts to 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 within pre-agreed arrangement.
You often discover that some goods are available on the site at 40% -60% discounts that is even challenging for the manufacturer to make available. You often discover that you will find 40-50 sellers to get a buy books online india but excepting one anchor seller, fat loss to make available such exciting discounts or offers. They will mask other seller completely and corner almost entire interest in these products, thereby also frustrate these multiple genuine sellers to arrive at the customers with their honest pricing offers.
Almost all e-commerce players take presctiption the verge of re-discovering their business models and wish to become profitable sooner. The fact is, none have been able to see a penny in profit to date. Many big and promising e-commerce and unicorn players have perished due to unsustainable losses and a lot of have been sold-out to other people. Year 2017 would see many more to fasten belts and go on to solve this riddle lest they perish from the race to the survival in the fittest.
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