In line with the FDI policy guidelines, “Marketplace label of e-commerce means providing of an i . t platform by an e-commerce entity on a digital and electronic network to behave like a facilitator between buyer and seller.”
The principle feature of this marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for purchasers to get which has a great number of sellers onboard to acquire something online. Thus, every time a product from amazon is bought, you happen to be actually buying it coming from a registered seller from it. As a result the merchandise is not directly sold by amazon. Here, amazon is only a website platform which facilitates a gathering area for a person to meets a lot of seller and offer various options and expense levels for the product or service.
Whereas the Inventory-led websites have specialized but limited product selection along with the serious customers may join to the telltale website for the specific product selection, including 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 plus a Level Arena
A lot of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or perhaps a large enterprise who have applied for privileged relates to them which helps them offer money saving deals or discounts to the customers. This might include a higher discount on products, Free freight, compensation for sales returns etc. The losses incurred on these deals /services are compensated with the Marketplace Player within pre-agreed arrangement.
It’s easy to see that some items are positioned on the site at 40% -60% discounts that is even hard for the manufacturer to provide. It’s easy to see that you can find 40-50 sellers for the medical books but excepting one anchor seller, no one is able to provide such exciting discounts or offers. They will mask other seller completely and corner almost entire interest in the products, thereby also frustrate these multiple genuine sellers to reach absolutely free themes using their honest pricing offers.
Virtually all e-commerce players are stored on the verge of re-discovering their business models and wish to become profitable sooner. Truth be told, none are already able to see anything at all in profit thus far. Many big and promising e-commerce and unicorn players have perished due to unsustainable losses and lots of are already out of stock to other people. Year 2017 would see many more to fasten belts and keep solve this riddle lest they perish inside the race to the survival with the fittest.
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