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

The primary feature of this marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give a platform for customers to interact having a many sellers onboard to buy something online. Thus, whenever a product from amazon is bought, you happen to be actually buying it from a registered seller by it. Therefore the product or service is just not directly sold by amazon. Here, amazon is only a website platform which facilitates a meeting spot for a person to meets a lot of seller and offer various options and expense levels for a services or products.
Whereas the Inventory-led websites have specialized but limited range of products as well as the serious customers may signing in to the telltale website for a specific range of products, such as caratlane.com for precious jewellery, booknest.directly into buy books, swiggy.com for ordering food, 1mg.com for medicines etc.

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Anchor Seller plus a Level Game
Almost all of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or perhaps a large enterprise who have inked privileged works with them that helps them offer bargains or discounts to the customers. This might add a higher discount on products, Free freight, compensation for sales returns etc. The losses incurred on these deals /services are compensated from the Marketplace Player under a pre-agreed arrangement.
It’s easy to discover that some items are on the web site at 40% -60% discounts that’s even challenging for the manufacturer to provide. It’s easy to discover that you can find 40-50 sellers for a buy books online Chennai but excepting one anchor seller, fat loss to provide such exciting discounts or offers. They will mask other seller completely and corner almost entire demand for the products, thereby also frustrate these multiple genuine sellers to achieve the shoppers using their honest pricing offers.
Virtually all e-commerce players are stored on the verge of re-discovering their business models and aspire to become profitable sooner. The reality is, none have already been 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 lots of have already been soldout to others. Year 2017 would see a lot more to fasten belts and pursue to solve this riddle lest they perish in the race to the survival with the fittest.
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