Based on the FDI policy guidelines, “Marketplace style of e-commerce means providing of an it platform by an e-commerce entity with a digital and electronic network some thing as a facilitator between buyer and seller.”

The main feature of this marketplace model could be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for purchasers to activate using a large numbers of sellers onboard to buy something online. Thus, when a product from amazon is bought, you happen to be actually acquiring it from a registered seller from it. Therefore the product isn’t directly sold by amazon. Here, amazon is simply a website platform which facilitates a meeting area for a consumer to meets a lot of seller and provide various options and cost levels for any services or products.
Whereas the Inventory-led websites have specialized but limited product range and the serious customers may log in to the telltale website for any specific product range, including 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 along with a Level Playing field
The majority of the marketplace players have anchor sellers on panel, who are either their subsidiary entities or possibly a large enterprise who have created privileged handles them which will help them offer cheap deals or discounts on the customers. This might include a higher discount on products, Free delivery, 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 see that some items are entirely on the website at 40% -60% discounts that is even a hardship on the manufacturer to provide. You regularly see that you’ll find 40-50 sellers for any buy engineering books but excepting one anchor seller, no one is able to provide such exciting discounts or offers. They will mask other seller completely and corner almost entire requirement for the products, thereby also frustrate these multiple genuine sellers to succeed in the customers can use making use of their honest pricing offers.
Nearly all e-commerce players take presctiption the verge of re-discovering their business models and wish to become profitable sooner. The fact is, none have been capable of seeing a cent in profit up to now. Many big and promising e-commerce and unicorn players have perished because of unsustainable losses and several have been soldout to other people. Year 2017 would see many more to fasten belts and continue to keep solve this riddle lest they perish within the race on the survival from the fittest.
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