In line with the FDI policy guidelines, “Marketplace type of e-commerce means providing of your i . t platform by an e-commerce entity on the digital and electronic network some thing as being a facilitator between buyer and seller.”
The main feature of the Marketplace model could be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give you a platform for patrons to interact with a large number of sellers onboard to buy something online. Thus, every time a product from amazon is bought, you are actually purchasing it from a registered seller by using it. As a result the product or service isn’t directly sold by amazon. Here, amazon is simply a website platform which facilitates a celebration place for a person to meets many seller and offer various options and value levels to get a service or product.
Whereas the Inventory-led websites have specialized but limited selection as well as the serious customers may log in to these website to get a specific selection, for example caratlane.com for precious jewellery, booknest.into buy books, swiggy.com for ordering food, 1mg.com for medicines etc.
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Anchor Seller and a Level Stage
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 entered into privileged relates to them that helps them offer cheap deals or discounts towards the customers. This could will include a higher discount on products, Free delivery, compensation for sales returns etc. The losses incurred on these deals /services are compensated by the Marketplace Player within pre-agreed arrangement.
It’s easy to discover that some goods are on the website at 40% -60% discounts that is even hard for the maker to supply. It’s easy to discover that you will find 40-50 sellers to get a children books but excepting one anchor seller, fat loss to supply such exciting discounts or offers. They even can mask other seller completely and corner almost entire requirement for the products, thereby also frustrate these multiple genuine sellers to achieve absolutely free themes using their honest pricing offers.
Just about all e-commerce players are saved to the verge of re-discovering their business models and dream to become profitable sooner. The truth is, none happen to be 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 several happen to be out of stock to other people. Year 2017 would see a lot more to fasten belts and pursue to solve this riddle lest they perish within the race towards the survival in the fittest.
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