According to the FDI policy guidelines, “Marketplace model of e-commerce means providing of the it platform by an e-commerce entity on the digital and electronic network to do something like a facilitator between buyer and seller.”


The key feature of the Marketplace model could be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for clients to activate using a large numbers of sellers onboard to get a product online. Thus, when a product from amazon is bought, you might be actually acquiring it coming from a registered seller by using it. As a result the merchandise just isn’t directly sold by amazon. Here, amazon is simply a website platform which facilitates a gathering area for someone to meets a lot of seller and gives various options and expense levels for any service or product.
Whereas the Inventory-led websites have specialized but limited product selection and also the serious customers may log in to those website for any specific product selection, such as 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 as well as a Level Playing field
The majority of the marketplace players have anchor sellers on panel, who are either their subsidiary entities or possibly a large enterprise who’ve created privileged works with them which helps them offer bargains or discounts for the customers. This could will include a higher discount on products, Free delivery, compensation for sales returns etc. The losses incurred on these deals /services are compensated through the Marketplace Player with a pre-agreed arrangement.
You often see that some merchandise is available on the website at 40% -60% discounts that is even challenging for the producer to provide. You often see that there are 40-50 sellers for any buy books online india but excepting one anchor seller, fat loss to provide such exciting discounts or offers. They even can mask other seller completely and corner almost entire need for the products, thereby also frustrate these multiple genuine sellers to arrive at absolutely free themes using 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 happen to be capable of seeing anything in profit thus far. Many big and promising e-commerce and unicorn players have perished on account of unsustainable losses and several happen to be sold out to others. Year 2017 would see many more to lock belts and go on to solve this riddle lest they perish within the race for the survival of the fittest.
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