In accordance with the FDI policy guidelines, “Marketplace label of e-commerce means providing of your i . t . platform by an e-commerce entity over a digital and electronic network to behave like a facilitator between seller and buyer.”
The principle feature of this marketplace model could be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for patrons to get with a many sellers onboard to buy an item online. Thus, whenever a product from amazon is bought, you happen to be actually acquiring it from the registered seller by using it. Consequently the product or service just isn’t directly sold by amazon. Here, amazon is simply website platform which facilitates a gathering place for the consumer to meets a large number of seller and offer various options and cost levels to get a products or services.
Whereas the Inventory-led websites have specialized but limited selection and the serious customers may signing in about bat roosting website to get a specific selection, like caratlane.com for precious jewellery, booknest.directly into buy books, swiggy.com for ordering food, 1mg.com for medicines etc.
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Anchor Seller along with a Level Playing field
Almost all of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or perhaps a large enterprise who may have entered into privileged relates to them which will help them offer money saving deals or discounts on the customers. This may incorporate a higher discount on products, FREE shipping, compensation for sales returns etc. The losses incurred on these deals /services are compensated from the Marketplace Player under a pre-agreed arrangement.
You often realize that some products are entirely on the site at 40% -60% discounts which is even challenging for the producer to make available. You often realize that you can find 40-50 sellers to get a buy books online Mumbai 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 demand for the products, thereby also frustrate these multiple genuine sellers to succeed in the shoppers using their honest pricing offers.
Just about all e-commerce players are saved to the verge of re-discovering their business models and aspire to become profitable sooner. The reality is, none have already 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 lots of have already been soldout to others. Year 2017 would see additional to fasten belts and continue to keep solve this riddle lest they perish in the race on the survival from the fittest.
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