Based on the FDI policy guidelines, “Marketplace style of e-commerce means providing of your i . t . platform by an e-commerce entity with a digital and electronic network some thing as a facilitator between buyer and seller.”
The main feature of the Marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give you a platform for patrons to have interaction with a many sellers onboard to buy a product online. Thus, whenever a product from amazon is bought, you might be actually purchasing it coming from a registered seller by using it. As a result the product isn’t directly sold by amazon. Here, amazon is only a website platform which facilitates a conference area for a consumer to meets many seller and provide various options and cost levels to get a product or service.
Whereas the Inventory-led websites have specialized but limited product range and also the serious customers may sign in to those website to get a specific product range, for example 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
Most of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or a large enterprise who have created privileged relates to them which will help them offer cheap deals or discounts towards the customers. This might 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 within pre-agreed arrangement.
You frequently see that some goods are on the site at 40% -60% discounts which is even hard for the producer to offer. You frequently see that there are 40-50 sellers to get a books online cheap but excepting one anchor seller, fat loss to offer such exciting discounts or offers. They will mask other seller completely and corner almost entire requirement for the products, thereby also frustrate these multiple genuine sellers to reach the customers can use with their honest pricing offers.
Just about all e-commerce players are on the verge of re-discovering their business models and wish to become profitable sooner. Truth be told, none happen to be capable of seeing anything at all in profit to date. Many big and promising e-commerce and unicorn players have perished because of unsustainable losses and lots of happen to be sold out to others. Year 2017 would see more to fasten belts and go on to solve this riddle lest they perish inside the race towards the survival with the fittest.
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