According to the FDI policy guidelines, “Marketplace type of e-commerce means providing associated with an information technology platform by an e-commerce entity on the digital and electronic network to act as a facilitator between seller and buyer.”
The main feature of the Marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for patrons to get with a large numbers of sellers onboard to acquire a product or service online. Thus, each time a product from amazon is bought, you are actually acquiring it coming from a registered seller by using it. Therefore the merchandise is just not directly sold by amazon. Here, amazon is simply a website platform which facilitates a celebration spot for someone to meets a large number of seller and give various options and cost levels for the products or services.
Whereas the Inventory-led websites have specialized but limited selection along with the serious customers may signing in to these website for the specific selection, 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 plus a Level Playing field
The majority of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or perhaps a large enterprise that have entered into privileged deals with them which assists them offer bargains or discounts towards the customers. This might will include a higher discount on products, Free freight, compensation for sales returns etc. The losses incurred on these deals /services are compensated from the Marketplace Player within a pre-agreed arrangement.
You frequently see that some products are entirely on your website at 40% -60% discounts that is even challenging for the manufacturer to supply. You frequently see that you’ll find 40-50 sellers for the buy books cheap but excepting one anchor seller, no one is able to supply such exciting discounts or offers. They even mask other seller completely and corner almost entire demand for the products, thereby also frustrate these multiple genuine sellers to achieve the customers can use with their honest pricing offers.
Nearly 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 happen to be able to see a cent in profit up to now. Many big and promising e-commerce and unicorn players have perished on account of unsustainable losses and several happen to be out of stock 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 of the fittest.
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