Based on the FDI policy guidelines, “Marketplace model of e-commerce means providing of your it platform by an e-commerce entity over a digital and electronic network some thing being a facilitator between buyer and seller.”

The primary feature of the Marketplace model could be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for customers to activate with a large numbers of sellers onboard to purchase an item online. Thus, each time a product from amazon is bought, you’re actually acquiring it from the registered seller with it. Therefore the product or service isn’t directly sold by amazon. Here, amazon is only a website platform which facilitates a conference spot for someone to meets many seller and give various options and expense levels for a product or service.
Whereas the Inventory-led websites have specialized but limited product range along with the serious customers may signing in to those website for a specific product range, for example caratlane.com for precious jewellery, booknest.straight 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 even a large enterprise who have created privileged works with them that helps them offer great deals or discounts to the customers. This may will include a higher discount on products, Free freight, compensation for sales returns etc. The losses incurred on these deals /services are compensated with the Marketplace Player within a pre-agreed arrangement.
You frequently realize that some goods are available on your website at 40% -60% discounts that is even hard for the manufacturer to make available. You frequently realize that there are 40-50 sellers for a buy romance books but excepting one anchor seller, no one is able to make available such exciting discounts or offers. They even mask other seller completely and corner almost entire interest in these products, thereby also frustrate these multiple genuine sellers to reach absolutely free themes using their honest pricing offers.
Just about all e-commerce players are stored on the verge of re-discovering their business models and desire to become profitable sooner. The truth is, none happen to be capable of seeing a cent in profit up to now. Many big and promising e-commerce and unicorn players have perished due to unsustainable losses and a lot of happen to be out of stock to others. Year 2017 would see additional to fasten belts and keep solve this riddle lest they perish within the race to the survival from the fittest.
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