According to the FDI policy guidelines, “Marketplace label of e-commerce means providing of an i . t platform by an e-commerce entity on a digital and electronic network to do something as being a facilitator between buyer and seller.”
The principle feature of the Marketplace model is that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for clients to interact using a large numbers of sellers onboard to buy a product online. Thus, whenever a product from amazon is bought, you might be actually acquiring it from your registered seller by it. As such the merchandise is just not directly sold by amazon. Here, amazon is simply a website platform which facilitates a gathering area for a person to meets many seller and give various options and price levels for the products or services.
Whereas the Inventory-led websites have specialized but limited product selection and the serious customers may signing in to the telltale website for the specific product selection, including caratlane.com for precious jewellery, booknest.in to buy books, swiggy.com for ordering food, 1mg.com for medicines etc.
Buy books online …
Anchor Seller as well as a Level Stage
A lot of the marketplace players have anchor sellers on panel, who are either their subsidiary entities or even a large enterprise who may have inked privileged relates to them that helps them offer bargains or discounts to 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 through the Marketplace Player within pre-agreed arrangement.
You frequently see that some goods are on your website at 40% -60% discounts which can be even hard for the maker to offer. You frequently see that you’ll find 40-50 sellers for the online book store but excepting one anchor seller, fat loss to offer such exciting discounts or offers. They will mask other seller completely and corner almost entire demand for these products, thereby also frustrate these multiple genuine sellers to arrive at the shoppers with their honest pricing offers.
Virtually all e-commerce players are on the verge of re-discovering their business models and dream to become profitable sooner. The reality is, none are already capable of seeing a cent in profit so far. Many big and promising e-commerce and unicorn players have perished as a result of unsustainable losses and a lot of are already sold-out to others. Year 2017 would see additional to fasten belts and keep solve this riddle lest they perish inside the race to the survival of the fittest.
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