In accordance with the FDI policy guidelines, “Marketplace type of e-commerce means providing of an i . t . platform by an e-commerce entity on a digital and electronic network to do something as a facilitator between buyer and seller.”
The principle feature of the Marketplace model would be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for patrons to have interaction using a large number of sellers onboard to acquire something online. Thus, when a product from amazon is bought, you might be actually acquiring it from a registered seller by it. Therefore the product is just not directly sold by amazon. Here, amazon is simply a website platform which facilitates a celebration area for someone to meets a large number of seller and offer various options and cost levels for the products or services.
Whereas the Inventory-led websites have specialized but limited selection and also the serious customers may sign in to those website for the specific selection, 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 plus a Level Arena
Most of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or perhaps a large enterprise who have inked privileged relates to them which helps them offer great deals or discounts to the customers. This might add a higher discount on products, Free postage, compensation for sales returns etc. The losses incurred on these deals /services are compensated through the Marketplace Player within pre-agreed arrangement.
You often see that some items are positioned on the site at 40% -60% discounts which is even challenging for the manufacturer to provide. You often see that you will find 40-50 sellers for the competitive books but excepting one anchor seller, fat loss to provide such exciting discounts or offers. They even can mask other seller completely and corner almost entire interest in these items, thereby also frustrate these multiple genuine sellers to reach the customers with their honest pricing offers.
Virtually all e-commerce players are stored on the verge of re-discovering their business models and wish to become profitable sooner. The reality is, none are already able to see a penny in profit thus far. Many big and promising e-commerce and unicorn players have perished because of unsustainable losses and many are already soldout to other people. Year 2017 would see more to fasten belts and keep solve this riddle lest they perish in the race to the survival from the fittest.
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