According to the FDI policy guidelines, “Marketplace model of e-commerce means providing of an it platform by an e-commerce entity over a digital and electronic network to act being a facilitator between buyer and seller.”

The main feature of the Marketplace model is that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give you a platform for purchasers to get which has a many sellers onboard to acquire an item online. Thus, each time a product from amazon is bought, you might be actually purchasing it coming from a registered seller by it. As a result the product just isn’t directly sold by amazon. Here, amazon is simply website platform which facilitates a celebration location for a person to meets numerous seller and provide various options and cost levels for the product or service.
Whereas the Inventory-led websites have specialized but limited selection as well as the serious customers may signing 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 and a Level Stage
Most of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or a large enterprise who may have entered into privileged deals with them which will help them offer cheap deals or discounts towards the customers. This might add a higher discount on products, Free freight, compensation for sales returns etc. The losses incurred on these deals /services are compensated through the Marketplace Player under a pre-agreed arrangement.
You often discover that some goods are entirely on the site at 40% -60% discounts which can be even challenging for the maker to supply. You often discover that there are 40-50 sellers for the buy management books but excepting one anchor seller, no one is able to supply such exciting discounts or offers. They even can mask other seller completely and corner almost entire requirement for they, thereby also frustrate these multiple genuine sellers to arrive at the customers making use of their honest pricing offers.
Almost all e-commerce players are stored on the verge of re-discovering their business models and desire to become profitable sooner. Truth be told, none are already capable of seeing a cent in profit to date. Many big and promising e-commerce and unicorn players have perished due to unsustainable losses and many are already sold out to others. Year 2017 would see a lot more to lock belts and continue to keep solve this riddle lest they perish inside the race towards the survival with the fittest.
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