In line with the FDI policy guidelines, “Marketplace style of e-commerce means providing of the it platform by an e-commerce entity over a digital and electronic network to act being a facilitator between buyer and seller.”
The key feature of the Marketplace model could be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give a platform for purchasers to activate using a great number of sellers onboard to buy a product online. Thus, whenever a product from amazon is bought, you might be actually purchasing it from the registered seller by it. As a result the product or service is not directly sold by amazon. Here, amazon is just a website platform which facilitates a celebration place for the consumer to meets a lot of seller and offer various options and cost levels for a products or services.
Whereas the Inventory-led websites have specialized but limited selection and the serious customers may join to these website for a specific selection, for example 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
A lot of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or perhaps a large enterprise that have inked privileged deals with them which helps them offer great deals or discounts towards the customers. This could will 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 within pre-agreed arrangement.
You often see that some merchandise is entirely on the site at 40% -60% discounts that is even hard for producer to supply. You often see that you can find 40-50 sellers for a buy banking books online but excepting one anchor seller, fat loss to supply such exciting discounts or offers. They can mask other seller completely and corner almost entire need for they, thereby also frustrate these multiple genuine sellers to reach the shoppers with their honest pricing offers.
Virtually all e-commerce players are on the verge of re-discovering their business models and dream to become profitable sooner. The truth is, none happen to be 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 a lot of happen to be sold-out to other people. Year 2017 would see more to fasten belts and keep solve this riddle lest they perish in the race towards the survival with the fittest.
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