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

The key feature of this marketplace model is that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for purchasers to activate with a many sellers onboard to buy a product online. Thus, every time a product from amazon is bought, you might be actually purchasing it coming from a registered seller by using it. Therefore the merchandise just isn’t directly sold by amazon. Here, amazon is simply a website platform which facilitates a gathering location for someone to meets a large number of seller and gives various options and expense levels for any products or services.
Whereas the Inventory-led websites have specialized but limited range of products as well as the serious customers may sign in to those website for any specific range of products, such as caratlane.com for precious jewellery, booknest.directly into buy books, swiggy.com for ordering food, 1mg.com for medicines etc.

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Anchor Seller plus a Level Playing field
A lot of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or even a large enterprise who may have created privileged works with them which helps them offer money saving deals or discounts towards the customers. This could include a higher discount on products, FREE shipping, compensation for sales returns etc. The losses incurred on these deals /services are compensated with the Marketplace Player within pre-agreed arrangement.
It’s easy to discover that some goods are entirely on the site at 40% -60% discounts which can be even challenging for the producer to provide. It’s easy to discover that you will find 40-50 sellers for any Online Books in Bangalore but excepting one anchor seller, fat loss to provide such exciting discounts or offers. They will mask other seller completely and corner almost entire need for the products, thereby also frustrate these multiple genuine sellers to arrive at the customers using honest pricing offers.
Virtually all e-commerce players are saved to the verge of re-discovering their business models and dream to become profitable sooner. Truth be told, none are already capable of seeing 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 are already sold out to other people. Year 2017 would see a lot more to lock belts and go on to solve this riddle lest they perish within the race towards the survival in the fittest.
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