In accordance with the FDI policy guidelines, “Marketplace model of e-commerce means providing associated with an i . t platform by an e-commerce entity over a digital and electronic network to act like a facilitator between buyer and seller.”

The principle feature of the Marketplace model could be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give a platform for clients to activate which has a great number of sellers onboard to buy a product online. Thus, each time a product from amazon is bought, you happen to be actually buying it coming from a registered seller by it. Consequently the product or service is just not directly sold by amazon. Here, amazon is just a website platform which facilitates a celebration location for the consumer 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 selection and also the serious customers may signing in about bat roosting website for a 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 along with a Level Game
The majority of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or perhaps a large enterprise who have applied for privileged works with them which assists them offer money saving deals or discounts on the customers. This may include a higher discount on products, Free freight, 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 realize that some products are on the website at 40% -60% discounts which is even hard for the manufacturer to supply. You regularly realize that you will find 40-50 sellers for a medical books 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 reach the customers can use using honest pricing offers.
Almost all e-commerce players are saved to the verge of re-discovering their business models and aspire to become profitable sooner. The reality is, none are already capable of seeing a penny in profit so far. Many big and promising e-commerce and unicorn players have perished on account of unsustainable losses and lots of are already soldout to other people. Year 2017 would see a lot more to lock belts and keep solve this riddle lest they perish inside the race on the survival of the fittest.
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