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

The key feature of the Marketplace model would be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for patrons to activate using a large numbers of sellers onboard to acquire a product online. Thus, every time a product from amazon is bought, you’re actually acquiring it from the registered seller from it. Therefore the merchandise isn’t directly sold by amazon. Here, amazon is just a website platform which facilitates a conference spot for the consumer to meets many seller and offer various options and cost levels for a services or products.
Whereas the Inventory-led websites have specialized but limited range of products as well as the serious customers may log in to the telltale website for a specific range of products, such as 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 plus a Level Playing field
The majority of the marketplace players have anchor sellers on panel, who are either their subsidiary entities or a large enterprise that have inked privileged deals with them which assists them offer great deals or discounts on the customers. This may add 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 with a pre-agreed arrangement.
You frequently see that some items are entirely on your website at 40% -60% discounts which can be even hard for the maker to provide. You frequently see that you will find 40-50 sellers for a computer books but excepting one anchor seller, no one is able to provide such exciting discounts or offers. They even mask other seller completely and corner almost entire requirement for these items, thereby also frustrate these multiple genuine sellers to succeed in the customers with their honest pricing offers.
Almost all e-commerce players take presctiption the verge of re-discovering their business models and wish to become profitable sooner. The fact is, none are already able to see anything in profit thus far. Many big and promising e-commerce and unicorn players have perished as a result of unsustainable losses and many are already soldout to others. Year 2017 would see many more to lock belts and continue to keep solve this riddle lest they perish in the race on the survival of the fittest.
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