According to the FDI policy guidelines, “Marketplace model of e-commerce means providing of your it platform by an e-commerce entity with a digital and electronic network to do something being a facilitator between buyer and seller.”

The main feature of the Marketplace model is that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give you a platform for clients to have interaction having a great number of sellers onboard to purchase a product or service online. Thus, every time a product from amazon is bought, you might be actually purchasing it from your registered seller from it. Therefore the item isn’t directly sold by amazon. Here, amazon is simply website platform which facilitates a conference area for someone to meets many seller and gives various options and value levels for a products or services.
Whereas the Inventory-led websites have specialized but limited product range and the serious customers may join to the telltale website for a specific product range, like 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 as well as a Level Arena
The majority of the marketplace players have anchor sellers on panel, who’re either their subsidiary entities or a large enterprise that have created privileged deals with them that helps them offer money saving deals or discounts for the customers. This may include 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 with a pre-agreed arrangement.
You frequently discover that some merchandise is entirely on the site at 40% -60% discounts which can be even a hardship on the maker to provide. You frequently discover that you will find 40-50 sellers for a buy comic 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 need for these products, thereby also frustrate these multiple genuine sellers to arrive at the shoppers making use of their honest pricing offers.
Almost all e-commerce players take presctiption the verge of re-discovering their business models and desire to become profitable sooner. The truth is, none have already been able to see anything in profit so far. Many big and promising e-commerce and unicorn players have perished on account of unsustainable losses and lots of have already been out of stock to others. Year 2017 would see additional to fasten belts and pursue to solve this riddle lest they perish within the race for the survival from the fittest.
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