Based on the FDI policy guidelines, “Marketplace style of e-commerce means providing associated with an it platform by an e-commerce entity over a digital and electronic network to act like a facilitator between buyer and seller.”
The principle feature of the Marketplace model is that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for clients to have interaction using a many sellers onboard to get a product online. Thus, each time a product from amazon is bought, you are actually buying it from the registered seller by it. Consequently the merchandise just isn’t directly sold by amazon. Here, amazon is simply website platform which facilitates a conference place for a consumer to meets a lot of seller and gives various options and cost levels to get a services or products.
Whereas the Inventory-led websites have specialized but limited product range along with the serious customers may join to those website to get a specific product range, such as caratlane.com for precious jewellery, booknest.in to buy books, swiggy.com for ordering food, 1mg.com for medicines etc.
Buy books online …
Anchor Seller plus a Level Playing field
A lot of the marketplace players have anchor sellers on panel, who are either their subsidiary entities or possibly a large enterprise who’ve entered into privileged relates to them which assists them offer money saving deals or discounts towards the customers. This will likely will include 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.
You frequently discover that some items are on the web site at 40% -60% discounts which can be even a hardship on producer to provide. You frequently discover that there are 40-50 sellers to get a online book store but excepting one anchor seller, no one is able to provide such exciting discounts or offers. They can mask other seller completely and corner almost entire requirement for they, thereby also frustrate these multiple genuine sellers to achieve the customers can use using their honest pricing offers.
Just about all e-commerce players take presctiption the verge of re-discovering their business models and wish to become profitable sooner. The reality is, none happen to be capable of seeing a penny in profit to date. Many big and promising e-commerce and unicorn players have perished as a result of unsustainable losses and a lot of happen to be out of stock to other people. Year 2017 would see a lot more to lock belts and keep solve this riddle lest they perish within the race towards the survival from the fittest.
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