Based on the FDI policy guidelines, “Marketplace model of e-commerce means providing of an i . t . platform by an e-commerce entity on the digital and electronic network some thing as being a facilitator between seller and buyer.”
The principle feature of the Marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for patrons to have interaction with a many sellers onboard to acquire a product or service online. Thus, every time a product from amazon is bought, you’re actually purchasing it from the registered seller from it. As a result the item is not directly sold by amazon. Here, amazon is simply a website platform which facilitates a conference place for a person to meets many seller and offer various options and price levels for any product or service.
Whereas the Inventory-led websites have specialized but limited product selection and the serious customers may sign in to these website for any specific product selection, 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 along with a Level Stage
Most of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or even a large enterprise who have applied for privileged deals with them that helps them offer bargains or discounts to the customers. This could add a higher discount on products, Free postage, compensation for sales returns etc. The losses incurred on these deals /services are compensated from the Marketplace Player within a pre-agreed arrangement.
It’s easy to see that some items are on your website at 40% -60% discounts that is even a hardship on the maker to supply. It’s easy to see that there are 40-50 sellers for any online books shopping but excepting one anchor seller, no one is able to supply such exciting discounts or offers. They can mask other seller completely and corner almost entire need for the products, thereby also frustrate these multiple genuine sellers to succeed in the customers can use with their honest pricing offers.
Just about all e-commerce players are saved to the verge of re-discovering their business models and dream to become profitable sooner. The fact is, none are already capable of seeing a cent in profit so far. Many big and promising e-commerce and unicorn players have perished as a result of unsustainable losses and a lot of are already sold-out to other people. Year 2017 would see a lot more to fasten belts and keep solve this riddle lest they perish inside the race to the survival with the fittest.
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