In accordance with the FDI policy guidelines, “Marketplace label of e-commerce means providing associated with an it platform by an e-commerce entity on the digital and electronic network some thing 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 customers to activate with a large numbers of sellers onboard to get a product or service online. Thus, each time a product from amazon is bought, you might be actually acquiring it coming from a registered seller with it. Therefore the merchandise isn’t directly sold by amazon. Here, amazon is simply website platform which facilitates a gathering spot for someone to meets a lot of seller and provide various options and cost levels for any products or services.
Whereas the Inventory-led websites have specialized but limited product range and the serious customers may signing in to these website for any specific product range, such as caratlane.com for precious jewellery, booknest.straight into buy books, swiggy.com for ordering food, 1mg.com for medicines etc.
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Anchor Seller along with a Level Game
The majority of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or even a large enterprise who may have applied for privileged works with them that helps them offer money saving deals or discounts towards the customers. This might incorporate a higher discount on products, FREE shipping, compensation for sales returns etc. The losses incurred on these deals /services are compensated by the Marketplace Player within a pre-agreed arrangement.
You regularly see that some items are entirely on the web site at 40% -60% discounts that’s even hard for the maker to make available. You regularly see that you will find 40-50 sellers for any Online Books in Bangalore but excepting one anchor seller, fat loss to make available such exciting discounts or offers. They will mask other seller completely and corner almost entire need for the products, thereby also frustrate these multiple genuine sellers to achieve absolutely free themes using their honest pricing offers.
Almost all e-commerce players are saved to the verge of re-discovering their business models and dream to become profitable sooner. Truth be told, none happen to be capable of seeing a cent in profit to date. Many big and promising e-commerce and unicorn players have perished on account of unsustainable losses and a lot of happen to be sold out to others. Year 2017 would see many more to lock belts and keep solve this riddle lest they perish in the race towards the survival in the fittest.
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