In line with the FDI policy guidelines, “Marketplace label of e-commerce means providing associated with an i . t . platform by an e-commerce entity with a digital and electronic network to behave like a facilitator between buyer and seller.”
The main feature of this marketplace model could be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give you a platform for clients to have interaction with a great number of sellers onboard to purchase an item online. Thus, each time a product from amazon is bought, you might be actually purchasing it coming from a registered seller by using it. As a result the product just isn’t directly sold by amazon. Here, amazon is simply a website platform which facilitates a gathering spot for the consumer to meets numerous seller and offer various options and value levels to get a service or product.
Whereas the Inventory-led websites have specialized but limited product range and the serious customers may sign in to these website to get a specific product range, 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 and a Level Stage
Almost all of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or possibly a large enterprise that have entered into privileged works with them which helps them offer cheap deals or discounts for the customers. This could incorporate a higher discount on products, Free postage, compensation for sales returns etc. The losses incurred on these deals /services are compensated by the Marketplace Player within a pre-agreed arrangement.
You frequently realize that some products are positioned on your website at 40% -60% discounts that is even challenging for the maker to supply. You frequently realize that you will find 40-50 sellers to get a buy banking books online but excepting one anchor seller, no one is able to supply such exciting discounts or offers. They can mask other seller completely and corner almost entire requirement for these products, thereby also frustrate these multiple genuine sellers to achieve the shoppers using their honest pricing offers.
Nearly all e-commerce players take presctiption the verge of re-discovering their business models and desire to become profitable sooner. The truth is, none are already able to see a cent in profit so far. Many big and promising e-commerce and unicorn players have perished on account of unsustainable losses and a lot of are already sold-out to others. Year 2017 would see additional to fasten belts and continue to keep solve this riddle lest they perish inside the race for the survival with the fittest.
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