Based on the FDI policy guidelines, “Marketplace model of e-commerce means providing of the it platform by an e-commerce entity on the digital and electronic network to act as 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 a platform for customers to have interaction which has a great number of sellers onboard to acquire an item online. Thus, when a product from amazon is bought, you might be actually purchasing it from a registered seller with it. As such the item is just not directly sold by amazon. Here, amazon is simply a website platform which facilitates a conference spot for a consumer to meets a lot of seller and give various options and expense levels for any services or products.
Whereas the Inventory-led websites have specialized but limited range of products as well as the serious customers may log in about bat roosting website for any specific range of products, for example 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 plus a Level Game
The majority of the marketplace players have anchor sellers on panel, who’re either their subsidiary entities or a large enterprise who have created privileged handles them which helps them offer bargains or discounts to the customers. This could will include a higher discount on products, Free postage, compensation for sales returns etc. The losses incurred on these deals /services are compensated by the Marketplace Player within pre-agreed arrangement.
You often see that some goods are entirely on the web site at 40% -60% discounts which can be even a hardship on the producer to offer. You often see that you can find 40-50 sellers for any buy academic 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 requirement for they, thereby also frustrate these multiple genuine sellers to arrive at the shoppers using 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 truth is, none have already been capable of seeing a penny in profit so far. Many big and promising e-commerce and unicorn players have perished on account of unsustainable losses and lots of have already been sold-out to other people. Year 2017 would see additional to lock belts and pursue to solve this riddle lest they perish inside the race to the survival of the fittest.
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