According to the FDI policy guidelines, “Marketplace label of e-commerce means providing of an i . t . platform by an e-commerce entity with a digital and electronic network to do something as being a facilitator between seller and buyer.”
The principle feature of this marketplace model could be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give you a platform for patrons to have interaction which has a great number of sellers onboard to acquire an item online. Thus, when a product from amazon is bought, you might be actually purchasing it from a registered seller by using it. As such the item isn’t directly sold by amazon. Here, amazon is simply a website platform which facilitates a meeting spot for someone to meets a large number of seller and provide various options and cost levels to get a services or products.
Whereas the Inventory-led websites have specialized but limited range of products as well as the serious customers may signing in to these website to get a specific range of products, like 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 as well as a Level Playing field
Most of the marketplace players have anchor sellers on panel, who’re either their subsidiary entities or perhaps a large enterprise who’ve applied for privileged relates to them which will help them offer great deals or discounts on the customers. This will likely include a higher discount on products, Free freight, compensation for sales returns etc. The losses incurred on these deals /services are compensated with the Marketplace Player within a pre-agreed arrangement.
You regularly discover that some merchandise is on the site at 40% -60% discounts that’s even challenging for producer to provide. You regularly discover that you will find 40-50 sellers to get a online books shopping but excepting one anchor seller, fat loss to provide such exciting discounts or offers. They even mask other seller completely and corner almost entire requirement for these products, thereby also frustrate these multiple genuine sellers to reach the shoppers making use of their honest pricing offers.
Nearly all e-commerce players take presctiption the verge of re-discovering their business models and dream to become profitable sooner. The truth is, none are already capable of seeing a cent in profit thus far. Many big and promising e-commerce and unicorn players have perished because of unsustainable losses and many are already out of stock to others. Year 2017 would see more to lock belts and continue to keep solve this riddle lest they perish inside the race on the survival with the fittest.
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