In line with the FDI policy guidelines, “Marketplace model of e-commerce means providing of your i . t . platform by an e-commerce entity on a digital and electronic network to do something being 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. supply a platform for customers to activate having a large number of sellers onboard to get something online. Thus, whenever a product from amazon is bought, you happen to be actually buying it from a registered seller by using it. As such 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 give various options and expense levels to get a service or product.
Whereas the Inventory-led websites have specialized but limited range of products and also the serious customers may join to these website to get a specific range of products, such as 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 Stage
Most of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or even a large enterprise who may have inked privileged works with them that helps them offer bargains or discounts to the customers. This may incorporate a higher discount on products, Free delivery, compensation for sales returns etc. The losses incurred on these deals /services are compensated by the Marketplace Player under a pre-agreed arrangement.
You frequently find that some products are positioned on your website at 40% -60% discounts that is even hard for producer to supply. You frequently find that you’ll find 40-50 sellers to get a books online cheap 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 the products, thereby also frustrate these multiple genuine sellers to reach the shoppers using honest pricing offers.
Almost all e-commerce players are on the verge of re-discovering their business models and desire to become profitable sooner. The reality is, none happen to be able to see a cent in profit thus far. Many big and promising e-commerce and unicorn players have perished because of unsustainable losses and many happen to be out of stock to others. Year 2017 would see many more to fasten belts and pursue to solve this riddle lest they perish inside the race to the survival with the fittest.
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