Based on the FDI policy guidelines, “Marketplace model of e-commerce means providing of the it platform by an e-commerce entity on a digital and electronic network to act as being a facilitator between buyer and seller.”
The key feature of this marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for patrons to activate using a large number of sellers onboard to get a product online. Thus, every time a product from amazon is bought, you might be actually buying it coming from a registered seller with it. As a result the merchandise is just not directly sold by amazon. Here, amazon is just a website platform which facilitates a conference place for someone to meets a lot of seller and offer various options and cost levels to get a product or service.
Whereas the Inventory-led websites have specialized but limited range of products along with the serious customers may sign in about bat roosting website to get a specific range of products, such as caratlane.com for precious jewellery, booknest.in to buy books, swiggy.com for ordering food, 1mg.com for medicines etc.
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Anchor Seller as well as a Level Stage
The majority of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or a large enterprise who have inked privileged relates to them which assists them offer bargains or discounts to the customers. This may add a higher discount on products, Free delivery, compensation for sales returns etc. The losses incurred on these deals /services are compensated through the Marketplace Player under a pre-agreed arrangement.
You often realize that some goods are entirely on your website at 40% -60% discounts which can be even hard for the maker to provide. You often realize that you’ll find 40-50 sellers to get a buy romance books but excepting one anchor seller, no one is able to provide such exciting discounts or offers. They can mask other seller completely and corner almost entire interest in the products, thereby also frustrate these multiple genuine sellers to succeed in the shoppers using their honest pricing offers.
Nearly all e-commerce players are stored on the verge of re-discovering their business models and desire to become profitable sooner. The fact is, none have already been able to see anything at all in profit to date. Many big and promising e-commerce and unicorn players have perished due to unsustainable losses and lots of have already been sold out to others. Year 2017 would see a lot more to lock belts and pursue to solve this riddle lest they perish from the race to the survival with the fittest.
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