In line with the FDI policy guidelines, “Marketplace label of e-commerce means providing of the it platform by an e-commerce entity with a digital and electronic network to do something as being a facilitator between buyer and seller.”
The main feature of this marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give you a platform for clients to interact with a large numbers of sellers onboard to buy an item online. Thus, every time a product from amazon is bought, you might be actually acquiring it coming from a registered seller with it. Consequently the item isn’t directly sold by amazon. Here, amazon is just a website platform which facilitates a gathering area for a person to meets a large number of seller and offer various options and value levels to get a products or services.
Whereas the Inventory-led websites have specialized but limited product range and the serious customers may join to those website to get a specific product range, including caratlane.com for precious jewellery, booknest.directly into buy books, swiggy.com for ordering food, 1mg.com for medicines etc.
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Anchor Seller along with a Level Stage
The majority of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or perhaps a large enterprise who’ve created privileged handles them that helps them offer money saving deals or discounts on the customers. This could include a higher discount on products, Free postage, compensation for sales returns etc. The losses incurred on these deals /services are compensated by the Marketplace Player within pre-agreed arrangement.
It’s easy to discover that some merchandise is entirely on your website at 40% -60% discounts that is even challenging for the producer to supply. It’s easy to discover that you can find 40-50 sellers to get a buy engineering books but excepting one anchor seller, no one is able to supply such exciting discounts or offers. They will mask other seller completely and corner almost entire interest in these products, thereby also frustrate these multiple genuine sellers to reach the customers using their honest pricing offers.
Nearly all e-commerce players are saved to the verge of re-discovering their business models and desire to become profitable sooner. The fact is, none have been capable of seeing a penny in profit so far. Many big and promising e-commerce and unicorn players have perished due to unsustainable losses and many have been out of stock to others. Year 2017 would see more to lock belts and continue to keep solve this riddle lest they perish from the race on the survival from the fittest.
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