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

The primary feature of this marketplace model is that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for customers to activate which has a great number of sellers onboard to buy an item online. Thus, when a product from amazon is bought, you happen to be actually purchasing it from a registered seller with it. Therefore the product or service just isn’t directly sold by amazon. Here, amazon is simply website platform which facilitates a celebration location for a person to meets many seller and provide various options and cost levels for a service or product.
Whereas the Inventory-led websites have specialized but limited selection as well as the serious customers may signing in to these website for a specific 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 along with a Level Stage
Most of the marketplace players have anchor sellers on panel, who’re either their subsidiary entities or even a large enterprise that have inked privileged deals with them which helps them offer great deals or discounts to the customers. This will likely will include 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 with a pre-agreed arrangement.
It’s easy to discover that some goods are available on the site at 40% -60% discounts which is even hard for producer to make available. It’s easy to discover that you will find 40-50 sellers for a books online but excepting one anchor seller, no one is able to make available such exciting discounts or offers. They even mask other seller completely and corner almost entire demand for these items, thereby also frustrate these multiple genuine sellers to reach absolutely free themes using their honest pricing offers.
Almost all e-commerce players are on the verge of re-discovering their business models and aspire to become profitable sooner. The fact is, none are already capable of seeing a cent in profit to date. Many big and promising e-commerce and unicorn players have perished on account of unsustainable losses and a lot of are already out of stock to other people. Year 2017 would see more to fasten belts and go on to solve this riddle lest they perish in the race to the survival from the fittest.
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