In line with the FDI policy guidelines, “Marketplace model of e-commerce means providing of the i . t platform by an e-commerce entity on a digital and electronic network to act like a facilitator between seller and buyer.”
The main feature of this marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for customers to activate with a large number of sellers onboard to acquire something online. Thus, whenever a product from amazon is bought, you happen to be actually acquiring it from the registered seller with it. As a result the item isn’t directly sold by amazon. Here, amazon is simply website platform which facilitates a meeting place for a consumer to meets a lot of seller and give various options and expense levels for any product or service.
Whereas the Inventory-led websites have specialized but limited range of products and also the serious customers may log in to those website for any specific range of products, including caratlane.com for precious jewellery, booknest.into buy books, swiggy.com for ordering food, 1mg.com for medicines etc.
Buy books online …
Anchor Seller plus a Level Playing field
Most of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or even a large enterprise who’ve entered into privileged works with them which will help them offer great deals or discounts towards the customers. This might will include a higher discount on products, Free postage, compensation for sales returns etc. The losses incurred on these deals /services are compensated from the Marketplace Player within pre-agreed arrangement.
You often discover that some merchandise is on your website at 40% -60% discounts that is even a hardship on the manufacturer to make available. You often discover that there are 40-50 sellers for any online book store but excepting one anchor seller, fat loss to make available such exciting discounts or offers. They even can mask other seller completely and corner almost entire requirement for these products, thereby also frustrate these multiple genuine sellers to succeed in the customers with their honest pricing offers.
Just about all e-commerce players are stored on the verge of re-discovering their business models and wish to become profitable sooner. The fact is, none are already capable of seeing a penny in profit up to now. Many big and promising e-commerce and unicorn players have perished due to unsustainable losses and many are already sold-out to other people. Year 2017 would see a lot more to fasten belts and pursue to solve this riddle lest they perish within the race towards the survival with the fittest.
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