In accordance with the FDI policy guidelines, “Marketplace label of e-commerce means providing associated with an it platform by an e-commerce entity over a digital and electronic network to behave being a facilitator between buyer and seller.”
The principle feature of the Marketplace model is that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for customers to interact having a great number of sellers onboard to buy a product online. Thus, every time a product from amazon is bought, you might be actually acquiring it from a registered seller with it. As a result the item just isn’t directly sold by amazon. Here, amazon is simply a website platform which facilitates a meeting spot for a person to meets a large number of seller and offer various options and expense levels for a services or products.
Whereas the Inventory-led websites have specialized but limited product selection as well as the serious customers may log in to these website for a specific product selection, such as 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 as well as 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 may have entered into privileged handles them which will help them offer money saving deals or discounts on 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 from the Marketplace Player with a pre-agreed arrangement.
You often find that some products are on your website at 40% -60% discounts which is even hard for producer to make available. You often find that you can find 40-50 sellers for a buy books online Mumbai but excepting one anchor seller, fat loss to make available such exciting discounts or offers. They will mask other seller completely and corner almost entire demand for they, thereby also frustrate these multiple genuine sellers to succeed in the shoppers using honest pricing offers.
Almost all e-commerce players are stored on the verge of re-discovering their business models and wish to become profitable sooner. The truth is, none are already able to see a cent in profit thus far. Many big and promising e-commerce and unicorn players have perished because of unsustainable losses and many are already sold-out to others. Year 2017 would see many more to fasten belts and go on to solve this riddle lest they perish within the race on the survival in the fittest.
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