According to the FDI policy guidelines, “Marketplace style of e-commerce means providing of an it platform by an e-commerce entity over a digital and electronic network to act being a facilitator between buyer and seller.”

The principle feature of the Marketplace model is the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for clients to interact using a large number of sellers onboard to acquire something online. Thus, each time a product from amazon is bought, you are actually buying it from the registered seller by using it. Consequently the product is not directly sold by amazon. Here, amazon is simply a website platform which facilitates a celebration location for a consumer to meets a lot of seller and offer various options and price levels to get a product or service.
Whereas the Inventory-led websites have specialized but limited product range as well as the serious customers may log in to those website to get a 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 plus a Level Playing field
Almost all of the marketplace players have anchor sellers on panel, who will be either their subsidiary entities or possibly a large enterprise who’ve entered into privileged handles them which helps them offer money saving deals or discounts to the customers. This will likely add 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.
You frequently discover that some products are on the web site at 40% -60% discounts that’s even challenging for producer to supply. You frequently discover that you can find 40-50 sellers to get a ONline book store bangalore but excepting one anchor seller, no one is able to supply such exciting discounts or offers. They even can mask other seller completely and corner almost entire need for these products, thereby also frustrate these multiple genuine sellers to reach the shoppers using their honest pricing offers.
Just about all e-commerce players are saved to the verge of re-discovering their business models and aspire to become profitable sooner. The truth is, none have already been able to see anything in profit up to now. Many big and promising e-commerce and unicorn players have perished as a result of unsustainable losses and lots of have already been sold out to others. Year 2017 would see a lot more to fasten belts and keep solve this riddle lest they perish from the race to the survival with the fittest.
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