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

The principle feature of this marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give a platform for purchasers to get with a great number of sellers onboard to get an item online. Thus, whenever a product from amazon is bought, you are actually purchasing it from your registered seller by it. As a result the merchandise just isn’t directly sold by amazon. Here, amazon is simply a website platform which facilitates a conference location for someone to meets many seller and give various options and value levels to get a services or products.
Whereas the Inventory-led websites have specialized but limited selection and also the serious customers may signing in to those website to get a specific selection, for example caratlane.com for precious jewellery, booknest.straight into buy books, swiggy.com for ordering food, 1mg.com for medicines etc.

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Anchor Seller and a Level Playing field
Most of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or perhaps a large enterprise who may have inked privileged deals with them which will help them offer cheap deals or discounts to the customers. This will likely incorporate a higher discount on products, Free freight, compensation for sales returns etc. The losses incurred on these deals /services are compensated through the Marketplace Player under a pre-agreed arrangement.
You regularly realize that some products are positioned on the site at 40% -60% discounts which can be even hard for the producer to make available. You regularly realize that there are 40-50 sellers to get a ONline book store bangalore but excepting one anchor seller, fat loss to make available such exciting discounts or offers. They can mask other seller completely and corner almost entire need for they, thereby also frustrate these multiple genuine sellers to arrive at the shoppers using their honest pricing offers.
Virtually all e-commerce players are saved to the verge of re-discovering their business models and desire to become profitable sooner. Truth be told, none have already been capable of seeing anything in profit to date. Many big and promising e-commerce and unicorn players have perished because of unsustainable losses and several have already been soldout to others. Year 2017 would see many more to lock belts and keep solve this riddle lest they perish within the race to the survival from the fittest.
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