In accordance with the FDI policy guidelines, “Marketplace style of e-commerce means providing of your information technology platform by an e-commerce entity on a digital and electronic network some thing as 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 purchasers to get using 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 buying it from a registered seller by using it. As such the product or service isn’t directly sold by amazon. Here, amazon is just a website platform which facilitates a meeting spot for a consumer to meets a large number of seller and gives various options and expense levels for any services or products.
Whereas the Inventory-led websites have specialized but limited product selection and the serious customers may log in to those website for any specific product selection, like 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 Game
Most of the marketplace players have anchor sellers on panel, who’re either their subsidiary entities or a large enterprise who have inked privileged deals with them which will help them offer great 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 through the Marketplace Player under a pre-agreed arrangement.
You often find that some items are available on your website at 40% -60% discounts which is even a hardship on producer to supply. You often find that you can find 40-50 sellers for any academic books but excepting one anchor seller, fat loss to supply such exciting discounts or offers. They even can mask other seller completely and corner almost entire need for the products, thereby also frustrate these multiple genuine sellers to succeed in the customers can use using their honest pricing offers.
Just about all e-commerce players are on the verge of re-discovering their business models and wish to become profitable sooner. Truth be told, none have been able to see a penny in profit thus far. Many big and promising e-commerce and unicorn players have perished on account of unsustainable losses and a lot of have been out of stock to other people. Year 2017 would see a lot more to fasten belts and continue to keep solve this riddle lest they perish from the race towards the survival in the fittest.
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