According to the FDI policy guidelines, “Marketplace style of e-commerce means providing of an i . t . platform by an e-commerce entity with a digital and electronic network to behave as being a facilitator between buyer and seller.”

The principle feature of this marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for purchasers to have interaction having a many sellers onboard to acquire something online. Thus, every time a product from amazon is bought, you might be actually acquiring it coming from a registered seller from it. Consequently the product or service isn’t directly sold by amazon. Here, amazon is just a website platform which facilitates a gathering spot for a person to meets a lot of seller and gives various options and value levels for the products or services.
Whereas the Inventory-led websites have specialized but limited product range as well as the serious customers may signing in to these website for the specific product range, 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 will be either their subsidiary entities or even a large enterprise who have created privileged relates to them which will help them offer cheap deals or discounts for the customers. This will likely add a higher discount on products, Free delivery, compensation for sales returns etc. The losses incurred on these deals /services are compensated from the Marketplace Player within pre-agreed arrangement.
You regularly find that some products are entirely on the site at 40% -60% discounts that is even hard for the producer to make available. You regularly find that you will find 40-50 sellers for the buy engineering books but excepting one anchor seller, no one is able to make available such exciting discounts or offers. They will mask other seller completely and corner almost entire demand for these items, thereby also frustrate these multiple genuine sellers to succeed in the customers making use of their honest pricing offers.
Nearly all e-commerce players are on the verge of re-discovering their business models and dream to become profitable sooner. The fact is, none happen to be capable of seeing anything at all 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 a lot more to lock belts and continue to keep solve this riddle lest they perish inside the race for the survival with the fittest.
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