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

The main feature of this marketplace model is that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for customers to get having a large number of sellers onboard to buy a product online. Thus, every time a product from amazon is bought, you’re actually purchasing it from your registered seller from it. As such the merchandise just isn’t directly sold by amazon. Here, amazon is just a website platform which facilitates a conference place for someone to meets a large number of seller and offer various options and cost levels for the products or services.
Whereas the Inventory-led websites have specialized but limited selection as well as the serious customers may signing in about bat roosting website for the specific selection, such as 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 along with a Level Playing field
A lot of the marketplace players have anchor sellers on panel, who’re either their subsidiary entities or even a large enterprise who may have created privileged works with them which will help them offer great deals or discounts for the customers. This will likely add 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 with a pre-agreed arrangement.
It’s easy to find that some goods are entirely on the website at 40% -60% discounts that’s even a hardship on the producer to offer. It’s easy to find that you will find 40-50 sellers for the books online cheap but excepting one anchor seller, fat loss to offer such exciting discounts or offers. They even can mask other seller completely and corner almost entire interest in these items, thereby also frustrate these multiple genuine sellers to arrive at absolutely free themes using their honest pricing offers.
Just about all e-commerce players are stored on the verge of re-discovering their business models and wish to become profitable sooner. Truth be told, none have already been able to see anything at all in profit thus far. Many big and promising e-commerce and unicorn players have perished due to unsustainable losses and lots of have already been sold out to others. Year 2017 would see additional to fasten belts and go on to solve this riddle lest they perish in the race for the survival with the fittest.
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