In accordance with the FDI policy guidelines, “Marketplace label of e-commerce means providing of the it platform by an e-commerce entity over a digital and electronic network to behave as being a facilitator between seller and buyer.”
The principle feature of the Marketplace model would be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for patrons to interact with a many sellers onboard to buy something online. Thus, each time a product from amazon is bought, you’re actually purchasing it from a registered seller by using it. Therefore the product is not directly sold by amazon. Here, amazon is simply website platform which facilitates a conference location for the consumer to meets a lot of seller and offer various options and value levels for any product or service.
Whereas the Inventory-led websites have specialized but limited selection and also the serious customers may log in to the telltale website for any specific selection, including caratlane.com for precious jewellery, booknest.in to buy books, swiggy.com for ordering food, 1mg.com for medicines etc.
Buy books online …
Anchor Seller plus a Level Playing field
The majority of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or a large enterprise who have created privileged works with them that helps them offer cheap deals or discounts towards the customers. This might add a higher discount on products, Free delivery, compensation for sales returns etc. The losses incurred on these deals /services are compensated from the Marketplace Player under a pre-agreed arrangement.
You frequently discover that some goods are available on the website at 40% -60% discounts which can be even hard for the producer to provide. You frequently discover that there are 40-50 sellers for any academic books but excepting one anchor seller, fat loss to provide such exciting discounts or offers. They will mask other seller completely and corner almost entire demand for they, thereby also frustrate these multiple genuine sellers to reach the customers using honest pricing offers.
Almost all e-commerce players are on the verge of re-discovering their business models and dream to become profitable sooner. Truth be told, none are already able to see a cent in profit up to now. Many big and promising e-commerce and unicorn players have perished as a result of unsustainable losses and many are already out of stock to other people. Year 2017 would see more to lock belts and continue to keep solve this riddle lest they perish from the race towards the survival with the fittest.
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