In accordance with the FDI policy guidelines, “Marketplace label of e-commerce means providing of an it platform by an e-commerce entity with a digital and electronic network to act like a facilitator between seller and buyer.”
The principle feature of this marketplace model would be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for customers to get with a many sellers onboard to acquire a product or service online. Thus, when a product from amazon is bought, you might be actually purchasing it coming from a registered seller with it. As such the item just isn’t 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 offer various options and cost levels to get a products or services.
Whereas the Inventory-led websites have specialized but limited range of products along with the serious customers may join to these website to get a specific range of products, including caratlane.com for precious jewellery, booknest.in to buy books, swiggy.com for ordering food, 1mg.com for medicines etc.
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Anchor Seller along with a Level Playing field
Most of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or a large enterprise that have entered into privileged handles them that helps them offer cheap deals or discounts on the customers. This will likely add a higher discount on products, Free freight, compensation for sales returns etc. The losses incurred on these deals /services are compensated with the Marketplace Player under a pre-agreed arrangement.
You often discover that some goods are positioned on the website at 40% -60% discounts that’s even a hardship on the maker to offer. You often discover that you’ll find 40-50 sellers to get a buy books online Bangalore 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 they, thereby also frustrate these multiple genuine sellers to succeed in absolutely free themes using honest pricing offers.
Virtually all e-commerce players are stored on the verge of re-discovering their business models and desire to become profitable sooner. The reality is, none are already able to see anything in profit to date. Many big and promising e-commerce and unicorn players have perished because of unsustainable losses and several are already sold out to others. Year 2017 would see many more to lock belts and pursue to solve this riddle lest they perish from the race on the survival of the fittest.
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