Based on the FDI policy guidelines, “Marketplace label of e-commerce means providing of your i . t . platform by an e-commerce entity on the digital and electronic network to act as being a facilitator between seller and buyer.”
The main feature of this marketplace model would be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give you a platform for customers to have interaction having a large numbers of sellers onboard to acquire something online. Thus, when a product from amazon is bought, you are actually buying it from your registered seller by using it. Consequently the product is just not directly sold by amazon. Here, amazon is simply website platform which facilitates a conference spot for someone to meets numerous seller and provide various options and expense levels for any services or products.
Whereas the Inventory-led websites have specialized but limited range of products as well as the serious customers may log in to those website for any specific range of products, 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 Arena
Most of the marketplace players have anchor sellers on panel, who are either their subsidiary entities or possibly a large enterprise who have applied for privileged handles them which helps them offer money saving deals or discounts for the customers. This may incorporate a higher discount on products, FREE shipping, compensation for sales returns etc. The losses incurred on these deals /services are compensated by the Marketplace Player under a pre-agreed arrangement.
You often find that some products are positioned on the website at 40% -60% discounts which is even a hardship on the manufacturer to offer. You often find that you’ll find 40-50 sellers for any buy books online india but excepting one anchor seller, fat loss to offer such exciting discounts or offers. They even mask other seller completely and corner almost entire need for these products, thereby also frustrate these multiple genuine sellers to reach the customers using honest pricing offers.
Almost all e-commerce players are on the verge of re-discovering their business models and dream to become profitable sooner. The fact is, none have already been capable of seeing a penny in profit to date. Many big and promising e-commerce and unicorn players have perished as a result of unsustainable losses and many have already been sold out to other people. Year 2017 would see many more to lock belts and pursue to solve this riddle lest they perish within the race for the survival in the fittest.
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