In accordance with the FDI policy guidelines, “Marketplace model of e-commerce means providing of your information technology platform by an e-commerce entity on a digital and electronic network to do something like a facilitator between buyer and seller.”
The main feature of this marketplace model would be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for customers to interact with a large number of sellers onboard to get a product or service online. Thus, each time a product from amazon is bought, you might be actually buying it from the registered seller from it. As a result the merchandise is just not directly sold by amazon. Here, amazon is simply a website platform which facilitates a meeting place for someone to meets many seller and give various options and value levels for any service or product.
Whereas the Inventory-led websites have specialized but limited product range and also the serious customers may signing in to the telltale website for any specific product range, 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 as well as a Level Stage
The majority of the marketplace players have anchor sellers on panel, who are either their subsidiary entities or even a large enterprise that have entered into privileged works with them which assists them offer money saving deals or discounts to the customers. This might include a higher discount on products, Free freight, compensation for sales returns etc. The losses incurred on these deals /services are compensated from the Marketplace Player with a pre-agreed arrangement.
You frequently realize that some goods are positioned on your website at 40% -60% discounts that’s even a hardship on producer to supply. You frequently realize that you can find 40-50 sellers for any medical books but excepting one anchor seller, no one is able to supply such exciting discounts or offers. They even can mask other seller completely and corner almost entire requirement for they, thereby also frustrate these multiple genuine sellers to reach absolutely free themes using their honest pricing offers.
Just about all e-commerce players take presctiption the verge of re-discovering their business models and desire to become profitable sooner. Truth be told, none happen to be able to see anything in profit up to now. Many big and promising e-commerce and unicorn players have perished as a result of unsustainable losses and several happen to be sold-out to others. Year 2017 would see additional to lock belts and pursue to solve this riddle lest they perish inside the race to the survival of the fittest.
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