In line with the FDI policy guidelines, “Marketplace type of e-commerce means providing associated with an information technology platform by an e-commerce entity with a digital and electronic network to behave as a facilitator between seller and buyer.”
The main feature of this marketplace model would be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for customers to interact which has a large number of sellers onboard to get a product online. Thus, each time a product from amazon is bought, you’re actually acquiring it coming from a registered seller from it. As a result the item is not directly sold by amazon. Here, amazon is simply a website platform which facilitates a gathering area for a person to meets a large number of seller and give various options and cost levels to get a product or service.
Whereas the Inventory-led websites have specialized but limited product range and also the serious customers may join to these website to get a specific product range, like 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 as well as a Level Game
Most of the marketplace players have anchor sellers on panel, who’re either their subsidiary entities or a large enterprise that have created privileged relates to them which assists them offer money saving deals or discounts to the customers. This might will include a higher discount on products, Free freight, compensation for sales returns etc. The losses incurred on these deals /services are compensated from the Marketplace Player under a pre-agreed arrangement.
You regularly discover that some items are entirely on the site at 40% -60% discounts that is even challenging for the producer to provide. You regularly discover that you can find 40-50 sellers to get a ONline book store bangalore but excepting one anchor seller, fat loss to provide such exciting discounts or offers. They even can mask other seller completely and corner almost entire demand for they, thereby also frustrate these multiple genuine sellers to succeed in the customers can use with their honest pricing offers.
Almost all e-commerce players take presctiption the verge of re-discovering their business models and dream to become profitable sooner. The truth is, none happen to be capable of seeing a cent in profit to date. Many big and promising e-commerce and unicorn players have perished due to unsustainable losses and a lot of happen to be out of stock to other people. Year 2017 would see more to lock belts and go on to solve this riddle lest they perish within the race to the survival of the fittest.
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