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

The main feature of the Marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for patrons to activate having a large numbers of sellers onboard to buy an item online. Thus, whenever a product from amazon is bought, you are actually purchasing it from your registered seller by using it. As such the product or service isn’t directly sold by amazon. Here, amazon is just a website platform which facilitates a gathering location for a consumer to meets numerous seller and provide various options and cost levels for any product or service.
Whereas the Inventory-led websites have specialized but limited selection as well as the serious customers may signing in to these website for any specific selection, like 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 as well as a Level Playing field
Most of the marketplace players have anchor sellers on panel, who’re either their subsidiary entities or possibly a large enterprise that have inked privileged works with them which helps them offer money saving deals or discounts towards the customers. This might incorporate a higher discount on products, Free postage, compensation for sales returns etc. The losses incurred on these deals /services are compensated through the Marketplace Player within a pre-agreed arrangement.
You regularly realize that some merchandise is positioned on your website at 40% -60% discounts that is even hard for the producer to provide. You regularly realize that there are 40-50 sellers for any buy academic books but excepting one anchor seller, fat loss to provide such exciting discounts or offers. They even mask other seller completely and corner almost entire interest in these products, thereby also frustrate these multiple genuine sellers to achieve the shoppers making use of their honest pricing offers.
Virtually all e-commerce players take presctiption the verge of re-discovering their business models and dream to become profitable sooner. The fact is, none are already able to see 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 are already soldout to others. Year 2017 would see a lot more to lock belts and go on to solve this riddle lest they perish from the race towards the survival of the fittest.
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