In line with the FDI policy guidelines, “Marketplace type of e-commerce means providing of an it platform by an e-commerce entity on a digital and electronic network to do something like a facilitator between buyer and seller.”
The principle feature of this marketplace model would be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give a platform for patrons to have interaction with a large numbers of sellers onboard to get a product or service online. Thus, when a product from amazon is bought, you are actually buying it from the registered seller by it. Therefore the item is not directly sold by amazon. Here, amazon is simply a website platform which facilitates a celebration location for someone to meets a large number of seller and gives various options and value levels for the product or service.
Whereas the Inventory-led websites have specialized but limited product range and the serious customers may join about bat roosting website for the 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 as well as a Level Stage
Almost all of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or even a large enterprise who may have inked privileged deals with them that helps them offer great deals or discounts to the customers. This could incorporate a higher discount on products, Free delivery, compensation for sales returns etc. The losses incurred on these deals /services are compensated with the Marketplace Player within pre-agreed arrangement.
You frequently realize that some goods are available on the web site at 40% -60% discounts that is even challenging for the maker to supply. You frequently realize that you’ll find 40-50 sellers for the books online cheap but excepting one anchor seller, no one is able to supply such exciting discounts or offers. They will mask other seller completely and corner almost entire demand for these items, thereby also frustrate these multiple genuine sellers to reach the shoppers using their honest pricing offers.
Just about all e-commerce players are stored on the verge of re-discovering their business models and dream to become profitable sooner. Truth be told, none have been capable of seeing a cent in profit up to now. Many big and promising e-commerce and unicorn players have perished due to unsustainable losses and many have been sold out to other people. Year 2017 would see additional to fasten belts and continue to keep solve this riddle lest they perish within the race to the survival in the fittest.
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