According to the FDI policy guidelines, “Marketplace model of e-commerce means providing of the information technology platform by an e-commerce entity on a digital and electronic network some thing as a facilitator between buyer and seller.”
The main feature of this marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give you a platform for purchasers to activate using a many sellers onboard to buy an item online. Thus, when a product from amazon is bought, you might be actually acquiring it from the registered seller by it. As such the product or service is not directly sold by amazon. Here, amazon is simply a website platform which facilitates a celebration area for a person to meets a lot of seller and gives various options and cost levels to get a product or service.
Whereas the Inventory-led websites have specialized but limited product selection and also the serious customers may join to these website to get a specific product selection, including 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 and a Level Game
Most of the marketplace players have anchor sellers on panel, who are either their subsidiary entities or perhaps a large enterprise that have entered into privileged works with them that helps them offer money saving deals or discounts to the customers. This may add a higher discount on products, FREE shipping, compensation for sales returns etc. The losses incurred on these deals /services are compensated from the Marketplace Player within a pre-agreed arrangement.
You often discover that some merchandise is entirely on the web site at 40% -60% discounts which is even challenging for the producer to make available. You often discover that you will find 40-50 sellers to get a buy books online Hyderabad but excepting one anchor seller, fat loss to make available such exciting discounts or offers. They will mask other seller completely and corner almost entire need for these products, thereby also frustrate these multiple genuine sellers to achieve the customers using honest pricing offers.
Nearly all e-commerce players are saved to the verge of re-discovering their business models and aspire to become profitable sooner. The truth is, none happen to be able to see anything at all in profit thus far. Many big and promising e-commerce and unicorn players have perished due to unsustainable losses and many happen to be sold-out to other people. Year 2017 would see a lot more to lock belts and keep solve this riddle lest they perish in the race to the survival of the fittest.
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