Based on the FDI policy guidelines, “Marketplace label of e-commerce means providing of the i . t . platform by an e-commerce entity over a digital and electronic network to behave like a facilitator between seller and buyer.”


The primary feature of the Marketplace model would be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give a platform for customers to activate having a large number of sellers onboard to buy something online. Thus, whenever a product from amazon is bought, you’re actually acquiring it coming from a registered seller by it. Therefore the item is not directly sold by amazon. Here, amazon is simply a website platform which facilitates a meeting area for someone to meets many seller and give various options and price levels for the product or service.
Whereas the Inventory-led websites have specialized but limited selection along with the serious customers may sign in about bat roosting website for the specific 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 plus a Level Playing field
Almost all of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or a large enterprise that have created privileged relates to them which will help them offer cheap deals or discounts on 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 by the Marketplace Player within a pre-agreed arrangement.
You often find that some goods are positioned on your website at 40% -60% discounts that is even a hardship on the manufacturer to supply. You often find that you will find 40-50 sellers for the buy academic books but excepting one anchor seller, fat loss to supply such exciting discounts or offers. They can mask other seller completely and corner almost entire need for these products, thereby also frustrate these multiple genuine sellers to reach absolutely free themes using their honest pricing offers.
Virtually all e-commerce players are stored on the verge of re-discovering their business models and dream to become profitable sooner. The reality is, none have already been capable of seeing a cent 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 other people. Year 2017 would see many more to fasten belts and pursue to solve this riddle lest they perish inside the race on the survival from the fittest.
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