According to the FDI policy guidelines, “Marketplace label of e-commerce means providing of the information technology platform by an e-commerce entity with a digital and electronic network some thing like a facilitator between buyer and seller.”
The primary feature of the Marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give you a platform for customers to activate using a large number of sellers onboard to buy a product or service online. Thus, when a product from amazon is bought, you happen to be actually purchasing it from your registered seller from it. As a result the merchandise is not directly sold by amazon. Here, amazon is simply a website platform which facilitates a conference area for someone to meets numerous seller and provide various options and price levels for the products or services.
Whereas the Inventory-led websites have specialized but limited product selection along with the serious customers may signing in to the telltale website for the specific product selection, like 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 and a Level Playing field
Most of the marketplace players have anchor sellers on panel, who are either their subsidiary entities or even a large enterprise who have inked privileged handles them which will help them offer money saving deals or discounts for the customers. This may include a higher discount on products, Free freight, compensation for sales returns etc. The losses incurred on these deals /services are compensated by the Marketplace Player with a pre-agreed arrangement.
You regularly discover that some merchandise is positioned on the web site at 40% -60% discounts which can be even a hardship on producer to provide. You regularly discover that you can find 40-50 sellers for the buy books cheap but excepting one anchor seller, fat loss to provide such exciting discounts or offers. They can mask other seller completely and corner almost entire demand for these products, thereby also frustrate these multiple genuine sellers to reach absolutely free themes making use of their honest pricing offers.
Virtually all e-commerce players take presctiption the verge of re-discovering their business models and aspire to become profitable sooner. Truth be told, none are already able to see anything in profit up to now. Many big and promising e-commerce and unicorn players have perished on account of unsustainable losses and many are already sold-out to other people. Year 2017 would see a lot more to fasten belts and pursue to solve this riddle lest they perish in the race for the survival with the fittest.
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