In line with the FDI policy guidelines, “Marketplace model of e-commerce means providing of your i . t platform by an e-commerce entity on the digital and electronic network some thing as being a facilitator between seller and buyer.”
The principle feature of this marketplace model is that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for purchasers to get having a large numbers of sellers onboard to purchase a product or service online. Thus, whenever a product from amazon is bought, you’re actually purchasing it coming from a registered seller by using it. As such the merchandise is just not directly sold by amazon. Here, amazon is only a website platform which facilitates a meeting area for a person to meets a lot of seller and give various options and value levels for any services or products.
Whereas the Inventory-led websites have specialized but limited selection as well as the serious customers may log in to these website for any specific selection, for example 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 Playing field
The majority of the marketplace players have anchor sellers on panel, who are either their subsidiary entities or a large enterprise who have inked privileged deals with them that helps them offer great deals or discounts towards the customers. This might add a higher discount on products, FREE shipping, compensation for sales returns etc. The losses incurred on these deals /services are compensated by the Marketplace Player under a pre-agreed arrangement.
It’s easy to find that some products are available on your website at 40% -60% discounts which is even a hardship on the producer to provide. It’s easy to find that there are 40-50 sellers for any children books but excepting one anchor seller, fat loss to provide such exciting discounts or offers. They even mask other seller completely and corner almost entire interest in the products, thereby also frustrate these multiple genuine sellers to reach the customers can use using honest pricing offers.
Nearly all e-commerce players are stored on the verge of re-discovering their business models and aspire to become profitable sooner. The fact is, none are already capable of seeing anything at all 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 other people. Year 2017 would see a lot more to lock belts and keep solve this riddle lest they perish within the race towards the survival of the fittest.
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