According to the FDI policy guidelines, “Marketplace model of e-commerce means providing of the it platform by an e-commerce entity on the digital and electronic network to do something like a facilitator between buyer and seller.”
The main feature of this marketplace model is that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give you a platform for clients to get with a large numbers of sellers onboard to acquire a product or service online. Thus, whenever a product from amazon is bought, you are actually acquiring it from your registered seller from it. As such the item is not directly sold by amazon. Here, amazon is simply website platform which facilitates a celebration location for the consumer to meets numerous seller and give various options and value levels for a services or products.
Whereas the Inventory-led websites have specialized but limited selection and the serious customers may signing in to these website for 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 plus a Level Stage
Almost all of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or a large enterprise who may have inked privileged handles them which assists them offer money saving deals or discounts on the customers. This may incorporate 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 with a pre-agreed arrangement.
You often realize that some goods are on the site at 40% -60% discounts which can be even challenging for the manufacturer to provide. You often realize that you can find 40-50 sellers for a children books but excepting one anchor seller, no one is able to provide such exciting discounts or offers. They will mask other seller completely and corner almost entire requirement for the products, thereby also frustrate these multiple genuine sellers to reach absolutely free themes with their honest pricing offers.
Nearly all e-commerce players are saved to the verge of re-discovering their business models and desire to become profitable sooner. The reality is, none happen to be able to see a cent in profit thus far. Many big and promising e-commerce and unicorn players have perished on account of unsustainable losses and a lot of happen to be out of stock to other people. Year 2017 would see additional to lock belts and continue to keep solve this riddle lest they perish from the race on the survival from the fittest.
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