In accordance with the FDI policy guidelines, “Marketplace style of e-commerce means providing of your it platform by an e-commerce entity with a digital and electronic network some thing like a facilitator between seller and buyer.”
The principle feature of the Marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give a platform for customers to get with a large number of sellers onboard to acquire a product online. Thus, when a product from amazon is bought, you might be actually buying it from the registered seller from it. As a result the item isn’t directly sold by amazon. Here, amazon is just a website platform which facilitates a meeting area for a consumer to meets a lot of seller and give various options and value levels for a product or service.
Whereas the Inventory-led websites have specialized but limited range of products as well as the serious customers may join to these website for a specific range of products, such as caratlane.com for precious jewellery, booknest.into buy books, swiggy.com for ordering food, 1mg.com for medicines etc.
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Anchor Seller along with a Level Game
Almost all of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or a large enterprise that have inked privileged handles them that helps them offer money saving deals or discounts to the customers. This will likely will include a higher discount on products, Free postage, compensation for sales returns etc. The losses incurred on these deals /services are compensated through the Marketplace Player with a pre-agreed arrangement.
You often discover that some goods are available on the web site at 40% -60% discounts which can be even a hardship on the manufacturer to supply. You often discover that there are 40-50 sellers for a buy engineering books but excepting one anchor seller, fat loss to supply such exciting discounts or offers. They even can mask other seller completely and corner almost entire interest in they, thereby also frustrate these multiple genuine sellers to arrive at the customers making use of their honest pricing offers.
Nearly all e-commerce players are stored on the verge of re-discovering their business models and wish to become profitable sooner. The truth is, none are already able to see anything at all in profit so far. Many big and promising e-commerce and unicorn players have perished because of unsustainable losses and lots of are already sold out to others. Year 2017 would see many more to lock belts and keep solve this riddle lest they perish within the race to the survival from the fittest.
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