According to the FDI policy guidelines, “Marketplace type of e-commerce means providing of the i . t . platform by an e-commerce entity on a digital and electronic network to behave as a facilitator between buyer and seller.”

The main feature of the Marketplace model would be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for patrons to get using a many sellers onboard to acquire something online. Thus, when a product from amazon is bought, you happen to be actually buying it from your registered seller by it. Therefore the product is not directly sold by amazon. Here, amazon is simply a website platform which facilitates a gathering spot for someone to meets a large number of seller and offer various options and price levels for the product or service.
Whereas the Inventory-led websites have specialized but limited product range and also the serious customers may join to the telltale website for the specific product range, like caratlane.com for precious jewellery, booknest.straight 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
The majority of the marketplace players have anchor sellers on panel, who are either their subsidiary entities or possibly a large enterprise that have created privileged relates to them that helps them offer great deals or discounts to the customers. This might will include 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 within pre-agreed arrangement.
It’s easy to find that some items are positioned on the website at 40% -60% discounts which is even challenging for producer to offer. It’s easy to find that you will find 40-50 sellers for the buy management books but excepting one anchor seller, fat loss to offer such exciting discounts or offers. They will mask other seller completely and corner almost entire interest in the products, thereby also frustrate these multiple genuine sellers to achieve the customers can use making use of their honest pricing offers.
Virtually all e-commerce players are saved to the verge of re-discovering their business models and desire to become profitable sooner. The fact is, none happen to be 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 happen to be soldout to others. Year 2017 would see additional to fasten belts and continue to keep solve this riddle lest they perish in the race to the survival from the fittest.
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