Based on the FDI policy guidelines, “Marketplace label of e-commerce means providing of your information technology platform by an e-commerce entity over a digital and electronic network to act like 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. provide a platform for patrons to activate which has a many sellers onboard to purchase an item online. Thus, when a product from amazon is bought, you might be actually acquiring it coming from a registered seller with it. Consequently the product or service is just not directly sold by amazon. Here, amazon is only a website platform which facilitates a conference area for a consumer to meets many seller and gives various options and expense levels to get a services or products.
Whereas the Inventory-led websites have specialized but limited selection along with the serious customers may log in about bat roosting website to get a specific selection, for example 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 along with a Level Game
Almost all of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or perhaps a large enterprise who have applied for privileged relates to them which assists them offer cheap deals or discounts on the customers. This might add a higher discount on products, Free freight, compensation for sales returns etc. The losses incurred on these deals /services are compensated by the Marketplace Player within pre-agreed arrangement.
It’s easy to see that some goods are entirely on the website at 40% -60% discounts that is even challenging for the producer to provide. It’s easy to see that there are 40-50 sellers to get a buy management books but excepting one anchor seller, no one is able to provide such exciting discounts or offers. They even can mask other seller completely and corner almost entire demand for they, thereby also frustrate these multiple genuine sellers to succeed in the shoppers using their honest pricing offers.
Almost all e-commerce players are on the verge of re-discovering their business models and aspire to become profitable sooner. The reality is, none have already been able to see a penny in profit to date. Many big and promising e-commerce and unicorn players have perished because of unsustainable losses and many have already been sold out to others. Year 2017 would see many more to lock belts and pursue to solve this riddle lest they perish within the race on the survival of the fittest.
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