In line with the FDI policy guidelines, “Marketplace label of e-commerce means providing of an i . t platform by an e-commerce entity on the digital and electronic network to act being a facilitator between buyer and seller.”
The primary feature of this marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for purchasers to interact which has a large numbers of sellers onboard to buy an item online. Thus, when a product from amazon is bought, you are actually acquiring it coming from a registered seller with it. Consequently the product or service just isn’t directly sold by amazon. Here, amazon is just a website platform which facilitates a meeting spot for the consumer to meets numerous seller and give various options and cost levels for a service or product.
Whereas the Inventory-led websites have specialized but limited product range as well as the serious customers may sign in to the telltale website for a specific product range, like 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 Playing field
A lot of the marketplace players have anchor sellers on panel, who’re either their subsidiary entities or perhaps a large enterprise that have applied for privileged relates to them which assists them offer money saving deals or discounts to 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 by the Marketplace Player under a pre-agreed arrangement.
You frequently discover that some items are entirely on the website at 40% -60% discounts that’s even a hardship on producer to make available. You frequently discover that you will find 40-50 sellers for a medical books but excepting one anchor seller, fat loss to make available such exciting discounts or offers. They even mask other seller completely and corner almost entire need for these items, thereby also frustrate these multiple genuine sellers to achieve absolutely free themes using honest pricing offers.
Nearly all e-commerce players are saved to the verge of re-discovering their business models and wish to become profitable sooner. The reality is, none are already capable of seeing a cent in profit thus far. Many big and promising e-commerce and unicorn players have perished due to unsustainable losses and several are already sold-out to others. Year 2017 would see a lot more to fasten belts and pursue to solve this riddle lest they perish in the race to the survival of the fittest.
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