Based on the FDI policy guidelines, “Marketplace model of e-commerce means providing associated with an information technology platform by an e-commerce entity with 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. provide a platform for patrons to get which has a great number of sellers onboard to get a product online. Thus, whenever a product from amazon is bought, you’re actually buying it coming from a registered seller with it. As a result the product isn’t directly sold by amazon. Here, amazon is simply website platform which facilitates a conference place for someone to meets numerous seller and gives various options and price levels for any services or products.
Whereas the Inventory-led websites have specialized but limited product range and the serious customers may signing in to these website for any specific product range, including 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 and a Level Arena
Almost all of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or even a large enterprise who have applied for privileged deals with them which will help them offer money saving deals or discounts on the customers. This may add a higher discount on products, Free delivery, compensation for sales returns etc. The losses incurred on these deals /services are compensated by the Marketplace Player with a pre-agreed arrangement.
You regularly realize that some goods are available on the web site at 40% -60% discounts which is even a hardship on the manufacturer to offer. You regularly realize that you’ll find 40-50 sellers for any buy banking books online but excepting one anchor seller, fat loss to offer such exciting discounts or offers. They even can mask other seller completely and corner almost entire need for they, thereby also frustrate these multiple genuine sellers to arrive at absolutely free themes using honest pricing offers.
Virtually all e-commerce players are on the verge of re-discovering their business models and wish to become profitable sooner. The reality is, none happen to be able to see anything in profit up to now. Many big and promising e-commerce and unicorn players have perished as a result of unsustainable losses and several happen to be out of stock to other people. Year 2017 would see many more to lock belts and keep solve this riddle lest they perish in the race on the survival from the fittest.
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