Based on the FDI policy guidelines, “Marketplace model of e-commerce means providing of the i . t . platform by an e-commerce entity on a digital and electronic network to behave as a facilitator between seller and buyer.”

The primary feature of the Marketplace model would be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give a platform for clients to interact which has a great number of sellers onboard to purchase something online. Thus, whenever a product from amazon is bought, you happen to be actually purchasing it coming from a registered seller by it. Therefore the product or service just isn’t directly sold by amazon. Here, amazon is simply website platform which facilitates a celebration place for a consumer to meets a lot of seller and provide various options and price levels for the services or products.
Whereas the Inventory-led websites have specialized but limited product selection and also the serious customers may signing in to those website for the specific product selection, like caratlane.com for precious jewellery, booknest.into buy books, swiggy.com for ordering food, 1mg.com for medicines etc.

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Anchor Seller plus a Level Game
The majority of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or even a large enterprise who may have applied for privileged handles them which assists them offer money saving deals or discounts towards the customers. This will likely add 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 within pre-agreed arrangement.
It’s easy to discover that some products are on your website at 40% -60% discounts which can be even hard for producer to make available. It’s easy to discover that there are 40-50 sellers for the books online cheap 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 need for these items, thereby also frustrate these multiple genuine sellers to achieve the shoppers using honest pricing offers.
Just about all e-commerce players are saved to the verge of re-discovering their business models and dream to become profitable sooner. The truth is, none are already capable of seeing a cent in profit to date. Many big and promising e-commerce and unicorn players have perished as a result of unsustainable losses and many are already sold-out to other people. Year 2017 would see more to lock belts and keep solve this riddle lest they perish in the race towards the survival with the fittest.
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