Based on the FDI policy guidelines, “Marketplace model of e-commerce means providing associated with an i . t platform by an e-commerce entity with a digital and electronic network to behave as a facilitator between buyer and seller.”
The primary feature of the Marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give a platform for clients to get which has a great number of sellers onboard to acquire a product online. Thus, every time a product from amazon is bought, you’re actually acquiring it from a registered seller from it. Therefore the item is just not directly sold by amazon. Here, amazon is just a website platform which facilitates a gathering place for a consumer to meets many seller and offer various options and cost levels for any services or products.
Whereas the Inventory-led websites have specialized but limited product range and the serious customers may log in to the telltale website for any specific product range, including 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 along with a Level Game
Almost all of the marketplace players have anchor sellers on panel, who’re either their subsidiary entities or possibly a large enterprise that have created privileged relates to them that helps them offer money saving deals or discounts towards the customers. This may include a higher discount on products, Free freight, compensation for sales returns etc. The losses incurred on these deals /services are compensated with the Marketplace Player within pre-agreed arrangement.
You often discover that some items are available on your website at 40% -60% discounts that is even challenging for the producer to provide. You often discover that you can find 40-50 sellers for any books online but excepting one anchor seller, fat loss to provide such exciting discounts or offers. They can mask other seller completely and corner almost entire need for these items, thereby also frustrate these multiple genuine sellers to reach the shoppers using their honest pricing offers.
Just about all e-commerce players are saved to the verge of re-discovering their business models and aspire to become profitable sooner. The reality is, none happen to be capable of seeing a cent in profit so far. Many big and promising e-commerce and unicorn players have perished because of unsustainable losses and lots of happen to be sold out to others. Year 2017 would see more to lock belts and go on to solve this riddle lest they perish in the race towards the survival in the fittest.
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