In line with the FDI policy guidelines, “Marketplace type of e-commerce means providing of an i . t . platform by an e-commerce entity on a digital and electronic network to do something as a facilitator between seller and buyer.”
The principle feature of this marketplace model could be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give a platform for clients to have interaction having a many sellers onboard to purchase something online. Thus, each time a product from amazon is bought, you are actually buying it from your registered seller from it. As a result the product just isn’t directly sold by amazon. Here, amazon is simply a website platform which facilitates a celebration place for someone to meets a large number of seller and offer various options and price levels for any services or products.
Whereas the Inventory-led websites have specialized but limited range of products along with the serious customers may log in to those website for any specific range of products, such as caratlane.com for precious jewellery, booknest.in to buy books, swiggy.com for ordering food, 1mg.com for medicines etc.
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Anchor Seller plus a Level Game
The majority of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or perhaps a large enterprise who have inked privileged relates to them which helps them offer great deals or discounts for the customers. This will likely incorporate 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.
It’s easy to see that some merchandise is positioned on the website at 40% -60% discounts which is even challenging for the producer to supply. It’s easy to see that there are 40-50 sellers for any buy books online Hyderabad but excepting one anchor seller, no one is able to supply such exciting discounts or offers. They even can mask other seller completely and corner almost entire interest in these items, thereby also frustrate these multiple genuine sellers to succeed in the customers can use using their honest pricing offers.
Nearly all e-commerce players take presctiption the verge of re-discovering their business models and wish to become profitable sooner. Truth be told, none happen to be capable of seeing a penny in profit thus far. Many big and promising e-commerce and unicorn players have perished because of unsustainable losses and several happen to be sold-out to other people. Year 2017 would see more to fasten belts and go on to solve this riddle lest they perish inside the race for the survival of the fittest.
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