According to the FDI policy guidelines, “Marketplace model of e-commerce means providing of your information technology platform by an e-commerce entity on the digital and electronic network to behave being a facilitator between seller and buyer.”
The key feature of this marketplace model is that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for purchasers to get using a great number of sellers onboard to get a product online. Thus, whenever a product from amazon is bought, you might be actually buying it from your registered seller from it. Therefore the product just isn’t directly sold by amazon. Here, amazon is only a website platform which facilitates a celebration area for a consumer to meets a large number of seller and provide various options and cost levels for any service or product.
Whereas the Inventory-led websites have specialized but limited range of products as well as the serious customers may sign in to the telltale website for any specific range of products, including caratlane.com for precious jewellery, booknest.in to buy books, swiggy.com for ordering food, 1mg.com for medicines etc.
Buy books online …
Anchor Seller as well as a Level Playing field
Almost all of the marketplace players have anchor sellers on panel, who are either their subsidiary entities or possibly a large enterprise that have applied for privileged relates to them which assists them offer money saving deals or discounts towards the customers. This could add a higher discount on products, Free postage, compensation for sales returns etc. The losses incurred on these deals /services are compensated from the Marketplace Player with a pre-agreed arrangement.
You frequently find that some merchandise is available on the site at 40% -60% discounts that’s even challenging for producer to make available. You frequently find that there are 40-50 sellers for any online book store but excepting one anchor seller, no one is able to make available such exciting discounts or offers. They even mask other seller completely and corner almost entire demand for these items, thereby also frustrate these multiple genuine sellers to arrive at the shoppers using their honest pricing offers.
Just about all e-commerce players are saved to the verge of re-discovering their business models and wish to become profitable sooner. The truth is, none are already able to see anything in profit so far. Many big and promising e-commerce and unicorn players have perished as a result of unsustainable losses and several are already soldout to others. Year 2017 would see a lot more to lock belts and continue to keep solve this riddle lest they perish from the race towards the survival from the fittest.
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