According to the FDI policy guidelines, “Marketplace style of e-commerce means providing of the i . t platform by an e-commerce entity with a digital and electronic network to do something as being a facilitator between buyer and seller.”

The principle feature of this marketplace model could be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for customers to interact using a large number of sellers onboard to get a product online. Thus, whenever a product from amazon is bought, you’re actually acquiring it from a registered seller by using it. As such the product or service just isn’t directly sold by amazon. Here, amazon is just a website platform which facilitates a celebration area for someone to meets a lot of seller and provide various options and price levels for a product or service.
Whereas the Inventory-led websites have specialized but limited range of products and also the serious customers may join to these website for a specific range of products, such as 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 Arena
Almost all of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or a large enterprise who have created privileged handles them which assists them offer bargains or discounts towards the customers. This will likely include a higher discount on products, FREE shipping, compensation for sales returns etc. The losses incurred on these deals /services are compensated through the Marketplace Player with a pre-agreed arrangement.
It’s easy to find that some merchandise is entirely on the website at 40% -60% discounts which can be even challenging for the manufacturer to provide. It’s easy to find that you will find 40-50 sellers for a children books but excepting one anchor seller, no one is able to provide such exciting discounts or offers. They will mask other seller completely and corner almost entire requirement for they, thereby also frustrate these multiple genuine sellers to achieve the shoppers making use of their honest pricing offers.
Nearly all e-commerce players take presctiption the verge of re-discovering their business models and wish to become profitable sooner. The reality is, none happen to be able to see anything in profit to date. Many big and promising e-commerce and unicorn players have perished on account of unsustainable losses and many happen to be out of stock to others. Year 2017 would see many more to lock belts and keep solve this riddle lest they perish from the race towards the survival with the fittest.
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