In accordance with the FDI policy guidelines, “Marketplace style of e-commerce means providing associated with an information technology platform by an e-commerce entity on the digital and electronic network to do something being a facilitator between seller and buyer.”
The key feature of this marketplace model would be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give you a platform for patrons to get which has a many sellers onboard to buy a product online. Thus, every time a product from amazon is bought, you happen to be actually acquiring it from the registered seller by it. As such the merchandise is not directly sold by amazon. Here, amazon is simply website platform which facilitates a conference place for a person to meets many seller and gives various options and value levels for any services or products.
Whereas the Inventory-led websites have specialized but limited selection and the serious customers may signing in to these website for any specific selection, such as 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 Game
Most of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or even a large enterprise who’ve created privileged relates to them that helps them offer bargains or discounts on the customers. This might include a higher discount on products, FREE shipping, compensation for sales returns etc. The losses incurred on these deals /services are compensated through the Marketplace Player with a pre-agreed arrangement.
You often find that some products are entirely on the website at 40% -60% discounts that is even a hardship on the manufacturer to supply. You often find that you can find 40-50 sellers for any books online but excepting one anchor seller, no one is able to supply such exciting discounts or offers. They even mask other seller completely and corner almost entire demand for these products, thereby also frustrate these multiple genuine sellers to arrive at absolutely free themes using their honest pricing offers.
Nearly all e-commerce players are saved to the verge of re-discovering their business models and aspire to become profitable sooner. Truth be told, none are already able to see anything at all in profit so far. Many big and promising e-commerce and unicorn players have perished because of unsustainable losses and many are already sold-out to others. Year 2017 would see many more to lock belts and go on to solve this riddle lest they perish in the race on the survival in the fittest.
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