In accordance with the FDI policy guidelines, “Marketplace label of e-commerce means providing of your it platform by an e-commerce entity on the digital and electronic network to act like a facilitator between buyer and seller.”

The principle feature of the Marketplace model could be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give a platform for patrons to interact having a large number of sellers onboard to acquire something online. Thus, every time a product from amazon is bought, you happen to be actually purchasing it from a registered seller by it. As such the product or service is not directly sold by amazon. Here, amazon is simply website platform which facilitates a celebration place for the consumer to meets a lot of seller and offer various options and value levels to get a service or product.
Whereas the Inventory-led websites have specialized but limited range of products and also the serious customers may signing in about bat roosting website to get a specific range of products, 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 are either their subsidiary entities or perhaps a large enterprise who’ve entered into privileged deals with them which helps them offer money saving deals or discounts on the customers. This will likely will include a higher discount on products, Free delivery, compensation for sales returns etc. The losses incurred on these deals /services are compensated with the Marketplace Player within a pre-agreed arrangement.
You often discover that some products are on the web site at 40% -60% discounts that’s even hard for the producer to make available. You often discover that there are 40-50 sellers to get a computer books but excepting one anchor seller, fat loss to make available such exciting discounts or offers. They even can mask other seller completely and corner almost entire demand for these products, thereby also frustrate these multiple genuine sellers to arrive at the customers with their honest pricing offers.
Nearly 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 have already been capable of seeing anything at all in profit thus far. Many big and promising e-commerce and unicorn players have perished on account of unsustainable losses and lots of have already been sold out to other people. Year 2017 would see a lot more to fasten belts and go on to solve this riddle lest they perish within the race on the survival with the fittest.
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