In line with the FDI policy guidelines, “Marketplace type of e-commerce means providing of the information technology platform by an e-commerce entity with a digital and electronic network to act like a facilitator between buyer and seller.”


The key feature of this marketplace model would be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for clients to activate using a many sellers onboard to buy something online. Thus, every time a product from amazon is bought, you’re actually purchasing it from the registered seller with it. Consequently the merchandise is not directly sold by amazon. Here, amazon is simply a website platform which facilitates a conference area for a person to meets numerous seller and offer various options and value levels to get a product or service.
Whereas the Inventory-led websites have specialized but limited range of products as well as the serious customers may log in about bat roosting website to get a specific range of products, including 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
A lot of the marketplace players have anchor sellers on panel, who’re either their subsidiary entities or a large enterprise who’ve created privileged relates to them which will help them offer bargains or discounts towards the customers. This might include a higher discount on products, FREE shipping, compensation for sales returns etc. The losses incurred on these deals /services are compensated by the Marketplace Player within pre-agreed arrangement.
You often realize that some products are available on the web site at 40% -60% discounts that’s even challenging for the maker to provide. You often realize that there are 40-50 sellers to get a online books shopping but excepting one anchor seller, no one is able to provide such exciting discounts or offers. They even can mask other seller completely and corner almost entire requirement for these products, thereby also frustrate these multiple genuine sellers to achieve the customers with their honest pricing offers.
Almost all e-commerce players take presctiption the verge of re-discovering their business models and desire to become profitable sooner. The fact is, none have already been capable of seeing a penny in profit to date. Many big and promising e-commerce and unicorn players have perished as a result of unsustainable losses and many have already been out of stock to others. Year 2017 would see a lot more to fasten belts and pursue to solve this riddle lest they perish inside the race towards the survival with the fittest.
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