Based on the FDI policy guidelines, “Marketplace label of e-commerce means providing of the i . t . platform by an e-commerce entity on a digital and electronic network to do something as being a facilitator between seller and buyer.”

The main feature of the Marketplace model is that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for patrons to interact having a many sellers onboard to buy an item online. Thus, each time a product from amazon is bought, you’re actually acquiring it from the registered seller from it. Consequently the item isn’t directly sold by amazon. Here, amazon is simply a website platform which facilitates a meeting spot for a consumer to meets numerous seller and give various options and cost levels for the product or service.
Whereas the Inventory-led websites have specialized but limited selection along with the serious customers may signing in to these website for the specific selection, for example caratlane.com for precious jewellery, booknest.straight into buy books, swiggy.com for ordering food, 1mg.com for medicines etc.

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Anchor Seller and a Level Playing field
The majority of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or even a large enterprise who may have created privileged relates to them that helps them offer money saving deals or discounts on the customers. This could will 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 within a pre-agreed arrangement.
You often discover that some products are entirely on the site at 40% -60% discounts that’s even hard for the producer to provide. You often discover that you’ll find 40-50 sellers for the academic books but excepting one anchor seller, fat loss to provide such exciting discounts or offers. They can mask other seller completely and corner almost entire demand for these items, thereby also frustrate these multiple genuine sellers to reach the shoppers making use of their honest pricing offers.
Just about all e-commerce players are on the verge of re-discovering their business models and desire to become profitable sooner. The fact is, none happen to be capable of seeing anything in profit to date. Many big and promising e-commerce and unicorn players have perished as a result of unsustainable losses and a lot of happen to be sold out to other people. Year 2017 would see a lot more to lock belts and go on to solve this riddle lest they perish from the race on the survival from the fittest.
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