Based on the FDI policy guidelines, “Marketplace model of e-commerce means providing of an information technology platform by an e-commerce entity with a digital and electronic network to do something like a facilitator between seller and buyer.”

The key feature of the Marketplace model would be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for customers to interact which has a great number of sellers onboard to get a product or service online. Thus, every time a product from amazon is bought, you happen to be actually buying it coming from a registered seller from it. Therefore the merchandise is not directly sold by amazon. Here, amazon is just a website platform which facilitates a meeting area for a person to meets a large number of seller and offer various options and price levels for a product or service.
Whereas the Inventory-led websites have specialized but limited selection and the serious customers may log in to those website for a specific selection, including 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
A lot of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or even a large enterprise who have created privileged handles them which will help them offer bargains or discounts to the customers. This could incorporate a higher discount on products, FREE shipping, compensation for sales returns etc. The losses incurred on these deals /services are compensated by the Marketplace Player within a pre-agreed arrangement.
It’s easy to discover that some goods are on the web site at 40% -60% discounts which can be even a hardship on the manufacturer to offer. It’s easy to discover that you’ll find 40-50 sellers for a ONline book store bangalore but excepting one anchor seller, no one is able to offer such exciting discounts or offers. They can mask other seller completely and corner almost entire need for these items, thereby also frustrate these multiple genuine sellers to reach the customers can use using 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. Truth be told, none are already able to see anything at all in profit to date. Many big and promising e-commerce and unicorn players have perished because of unsustainable losses and many are already out of stock to other people. Year 2017 would see more to lock belts and pursue to solve this riddle lest they perish from the race to the survival with the fittest.
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