According to the FDI policy guidelines, “Marketplace model of e-commerce means providing associated with an i . t . platform by an e-commerce entity on the digital and electronic network to behave as being a facilitator between buyer and seller.”
The key feature of the Marketplace model is that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for patrons to activate having a large numbers of sellers onboard to acquire an item online. Thus, when a product from amazon is bought, you are actually purchasing it from a registered seller by using it. As such the item just isn’t directly sold by amazon. Here, amazon is simply a website platform which facilitates a conference place for someone to meets a large number of seller and gives various options and value levels for the product or service.
Whereas the Inventory-led websites have specialized but limited range of products and also the serious customers may log in to the telltale website for the specific range of products, for example caratlane.com for precious jewellery, booknest.straight into buy books, swiggy.com for ordering food, 1mg.com for medicines etc.
Buy books online …
Anchor Seller plus a Level Stage
A lot of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or a large enterprise that have created privileged deals with them which assists them offer bargains or discounts to the customers. This may incorporate a higher discount on products, Free freight, compensation for sales returns etc. The losses incurred on these deals /services are compensated by the Marketplace Player within pre-agreed arrangement.
You regularly see that some products are entirely on the web site at 40% -60% discounts which is even hard for the manufacturer to supply. You regularly see that you’ll find 40-50 sellers for the online book store but excepting one anchor seller, no one is able to supply such exciting discounts or offers. They even can mask other seller completely and corner almost entire need for the products, thereby also frustrate these multiple genuine sellers to arrive at the shoppers using honest pricing offers.
Almost all e-commerce players are saved to the verge of re-discovering their business models and aspire to become profitable sooner. The truth is, none are already capable of seeing anything in profit up to now. Many big and promising e-commerce and unicorn players have perished due to unsustainable losses and a lot of are already sold-out to other people. Year 2017 would see many more to lock belts and go on to solve this riddle lest they perish within the race to the survival from the fittest.
More details about online book store view this webpage: visit site