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

The main feature of the Marketplace model could be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give a platform for customers to interact using a large number of sellers onboard to acquire a product or service online. Thus, when a product from amazon is bought, you’re actually purchasing it from your registered seller by it. Therefore the product is just not directly sold by amazon. Here, amazon is just a website platform which facilitates a celebration location for the consumer to meets a large number of seller and offer various options and cost levels to get a products or services.
Whereas the Inventory-led websites have specialized but limited range of products as well as the serious customers may log in to the telltale website to get a specific range of products, such as 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 plus a Level Arena
A lot of the marketplace players have anchor sellers on panel, who’re either their subsidiary entities or perhaps a large enterprise who may have created privileged relates to them which assists them offer great deals or discounts towards the customers. This could include a higher discount on products, Free postage, compensation for sales returns etc. The losses incurred on these deals /services are compensated with the Marketplace Player within pre-agreed arrangement.
You often find that some goods are available on the website at 40% -60% discounts that’s even challenging for producer to make available. You often find that you can find 40-50 sellers to get a online book store but excepting one anchor seller, no one is able 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 reach the shoppers using honest pricing offers.
Just about all e-commerce players take presctiption the verge of re-discovering their business models and aspire to become profitable sooner. Truth be told, none are already able to see a penny in profit thus far. Many big and promising e-commerce and unicorn players have perished as a result of unsustainable losses and a lot of are already out of stock to others. Year 2017 would see more to lock belts and go on to solve this riddle lest they perish inside the race towards the survival in the fittest.
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