In line with the FDI policy guidelines, “Marketplace model of e-commerce means providing of your information technology platform by an e-commerce entity on the digital and electronic network to behave as being a facilitator between buyer and seller.”
The main feature of this marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for clients to get having a great number of sellers onboard to get something online. Thus, each time a product from amazon is bought, you are actually purchasing it from a registered seller by using it. Therefore the merchandise is not directly sold by amazon. Here, amazon is just a website platform which facilitates a meeting spot for a consumer to meets a large number of seller and gives various options and price levels for a products or services.
Whereas the Inventory-led websites have specialized but limited range of products along with the serious customers may log in to the telltale website for a specific range of products, for example 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 as well as a Level Playing field
Almost all of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or possibly a large enterprise who may have inked privileged relates to them that helps them offer great 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 with the Marketplace Player under a pre-agreed arrangement.
It’s easy to see that some items are positioned on the web site at 40% -60% discounts which can be even a hardship on the maker to offer. It’s easy to see that you will find 40-50 sellers for a books online cheap but excepting one anchor seller, no one is able to offer such exciting discounts or offers. They even can mask other seller completely and corner almost entire need for they, thereby also frustrate these multiple genuine sellers to achieve the customers making use of 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 have been able to see anything in profit to date. Many big and promising e-commerce and unicorn players have perished on account of unsustainable losses and a lot of have been soldout to others. Year 2017 would see more to lock belts and pursue to solve this riddle lest they perish within the race towards the survival of the fittest.
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