In accordance with the FDI policy guidelines, “Marketplace type of e-commerce means providing associated with an i . t . platform by an e-commerce entity over a digital and electronic network to behave as a facilitator between buyer and seller.”

The primary feature of this marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give a platform for purchasers to get having a many sellers onboard to purchase something online. Thus, every time a product from amazon is bought, you might be actually acquiring it from your registered seller by it. Consequently the product or service isn’t directly sold by amazon. Here, amazon is simply website platform which facilitates a gathering area for a person to meets a lot of seller and provide various options and price levels for the service or product.
Whereas the Inventory-led websites have specialized but limited product selection along with the serious customers may log in to those website for the specific product selection, such as 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 and a Level Stage
The majority of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or possibly a large enterprise who have applied for privileged deals with them which assists them offer great deals or discounts for the customers. This will likely add a higher discount on products, Free postage, compensation for sales returns etc. The losses incurred on these deals /services are compensated from the Marketplace Player under a pre-agreed arrangement.
You regularly see that some goods are available on the website at 40% -60% discounts that’s even challenging for the producer to provide. You regularly see that there are 40-50 sellers for the computer books 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 demand for these products, thereby also frustrate these multiple genuine sellers to succeed in the shoppers using honest pricing offers.
Virtually all e-commerce players take presctiption the verge of re-discovering their business models and aspire to become profitable sooner. The fact is, none happen to be capable of seeing a penny in profit to date. Many big and promising e-commerce and unicorn players have perished on account of unsustainable losses and a lot of happen to be sold-out to other people. Year 2017 would see more to lock belts and go on to solve this riddle lest they perish from the race for the survival of the fittest.
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