In line with the FDI policy guidelines, “Marketplace style of e-commerce means providing of your it platform by an e-commerce entity over a digital and electronic network to act being a facilitator between seller and buyer.”
The principle feature of the Marketplace model could be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for purchasers to have interaction using a great number of sellers onboard to get a product online. Thus, every time a product from amazon is bought, you happen to be actually purchasing it from your registered seller from it. As such the item just isn’t directly sold by amazon. Here, amazon is just a website platform which facilitates a gathering place for a person to meets many seller and provide various options and cost levels to get a products or services.
Whereas the Inventory-led websites have specialized but limited product range and the serious customers may signing in to the telltale website to get a specific product range, for example 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 along with a Level Playing field
Most of the marketplace players have anchor sellers on panel, who are either their subsidiary entities or even a large enterprise that have inked privileged deals with them which will help them offer cheap deals or discounts for the customers. This will likely will include a higher discount on products, FREE shipping, compensation for sales returns etc. The losses incurred on these deals /services are compensated with the Marketplace Player under a pre-agreed arrangement.
It’s easy to see that some goods are entirely on the website at 40% -60% discounts that’s even hard for the producer to supply. It’s easy to see that you will find 40-50 sellers to get a competitive books 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 requirement for these items, thereby also frustrate these multiple genuine sellers to achieve the customers can use with their honest pricing offers.
Virtually all e-commerce players take presctiption the verge of re-discovering their business models and aspire to become profitable sooner. The fact is, none are already able to see anything in profit thus far. Many big and promising e-commerce and unicorn players have perished on account of unsustainable losses and many are already sold-out to other people. Year 2017 would see additional to lock belts and go on to solve this riddle lest they perish from the race for the survival in the fittest.
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