In accordance with the FDI policy guidelines, “Marketplace type of e-commerce means providing of your it platform by an e-commerce entity over a digital and electronic network to act as being a facilitator between buyer and seller.”

The principle feature of this marketplace model is that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for patrons to get which has a large number of sellers onboard to purchase a product or service online. Thus, each time a product from amazon is bought, you happen to be actually acquiring it from a registered seller from it. Consequently the merchandise is just not directly sold by amazon. Here, amazon is simply website platform which facilitates a conference area for someone to meets a large number of seller and offer various options and value levels for the service or product.
Whereas the Inventory-led websites have specialized but limited product selection and also the serious customers may sign in to these 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 along with a Level Playing field
Most of the marketplace players have anchor sellers on panel, who are either their subsidiary entities or even a large enterprise who’ve entered into privileged deals with them that helps them offer money saving deals or discounts to the customers. This might 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 under a pre-agreed arrangement.
It’s easy to discover that some products are positioned on the web site at 40% -60% discounts which is even challenging for the producer to offer. It’s easy to discover that you can find 40-50 sellers for the buy books online Hyderabad but excepting one anchor seller, no one is able to offer such exciting discounts or offers. They even can mask other seller completely and corner almost entire requirement for the products, thereby also frustrate these multiple genuine sellers to succeed in the shoppers making use of their honest pricing offers.
Nearly all e-commerce players are saved to the verge of re-discovering their business models and wish to become profitable sooner. The reality is, none happen to be capable of seeing a cent in profit thus far. Many big and promising e-commerce and unicorn players have perished as a result of unsustainable losses and many happen to be out of stock to others. Year 2017 would see more to fasten belts and go on to solve this riddle lest they perish from the race to the survival of the fittest.
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