In line with the FDI policy guidelines, “Marketplace model of e-commerce means providing associated with an i . t platform by an e-commerce entity on the digital and electronic network some thing being a facilitator between seller and buyer.”
The main feature of the Marketplace model would be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for purchasers to have interaction using a large number of sellers onboard to get something online. Thus, when a product from amazon is bought, you are actually acquiring it from a registered seller from it. Therefore the merchandise is not directly sold by amazon. Here, amazon is only a website platform which facilitates a meeting place for someone to meets many seller and provide various options and value levels to get a product or service.
Whereas the Inventory-led websites have specialized but limited product selection along with the serious customers may signing in to the telltale website to get a specific product selection, 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 and a Level Playing field
Most of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or a large enterprise who’ve created privileged deals with them which assists them offer bargains or discounts to the customers. This might include a higher discount on products, Free postage, compensation for sales returns etc. The losses incurred on these deals /services are compensated with the Marketplace Player within pre-agreed arrangement.
You regularly see that some merchandise is available on the web site at 40% -60% discounts that is even a hardship on the maker to make available. You regularly see that you’ll find 40-50 sellers to get a buy books online Chennai but excepting one anchor seller, fat loss to make available 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 absolutely free themes using honest pricing offers.
Nearly all e-commerce players take presctiption the verge of re-discovering their business models and wish to become profitable sooner. The truth is, none have already been capable of seeing a penny 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 already been soldout to others. Year 2017 would see more to fasten belts and continue to keep solve this riddle lest they perish from the race to the survival of the fittest.
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