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

The primary feature of this marketplace model is that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for customers to have interaction with a large number of sellers onboard to acquire a product or service online. Thus, when a product from amazon is bought, you are actually buying it from the registered seller by using it. As a result the product or service just isn’t directly sold by amazon. Here, amazon is only a website platform which facilitates a meeting area for someone to meets numerous seller and provide various options and value levels to get a products or services.
Whereas the Inventory-led websites have specialized but limited selection and the serious customers may signing in about bat roosting website to get a specific selection, including 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 plus a Level Arena
A lot of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or possibly a large enterprise that have inked privileged handles them which will help them offer cheap deals or discounts for the customers. This may will 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 discover that some merchandise is on your website at 40% -60% discounts which is even hard for the manufacturer to supply. It’s easy to discover that you’ll find 40-50 sellers to get a buy comic books but excepting one anchor seller, fat loss to supply such exciting discounts or offers. They even mask other seller completely and corner almost entire demand for these items, thereby also frustrate these multiple genuine sellers to succeed in the customers using their honest pricing offers.
Almost all e-commerce players are stored on the verge of re-discovering their business models and wish to become profitable sooner. The fact is, none have been capable of seeing a cent in profit up to now. Many big and promising e-commerce and unicorn players have perished as a result of unsustainable losses and many have been sold out to others. Year 2017 would see additional to fasten belts and go on to solve this riddle lest they perish from the race for the survival from the fittest.
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