In line with the FDI policy guidelines, “Marketplace style of e-commerce means providing of your i . t platform by an e-commerce entity on a digital and electronic network some thing 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 purchasers to get using a great number of sellers onboard to purchase something online. Thus, whenever a product from amazon is bought, you’re actually acquiring it from your registered seller from it. Consequently the product or service is not directly sold by amazon. Here, amazon is simply a website platform which facilitates a gathering location for the consumer to meets numerous seller and give various options and value levels to get a products or services.
Whereas the Inventory-led websites have specialized but limited range of products as well as the serious customers may join to those website to get a specific range of products, like 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 along with a Level Playing field
Most of the marketplace players have anchor sellers on panel, who’re either their subsidiary entities or a large enterprise who may have inked privileged deals with them that helps them offer cheap deals or discounts towards the customers. This will likely 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 under a pre-agreed arrangement.
You regularly discover that some items are positioned on the web site at 40% -60% discounts that is even challenging for the producer to supply. You regularly discover that you will find 40-50 sellers to get a buy books online Hyderabad but excepting one anchor seller, no one is able to supply such exciting discounts or offers. They will mask other seller completely and corner almost entire requirement for these items, thereby also frustrate these multiple genuine sellers to succeed in the customers using their honest pricing offers.
Just about all e-commerce players take presctiption the verge of re-discovering their business models and wish to become profitable sooner. Truth be told, none happen to be able to see a penny in profit thus far. Many big and promising e-commerce and unicorn players have perished as a result of unsustainable losses and many happen to be sold out to others. Year 2017 would see additional to fasten belts and keep solve this riddle lest they perish from the race towards the survival from the fittest.
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