In accordance with the FDI policy guidelines, “Marketplace type of e-commerce means providing associated with an i . t platform by an e-commerce entity over a digital and electronic network to behave as a facilitator between seller and buyer.”

The main feature of this marketplace model could be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give you a platform for purchasers to interact having a great number of sellers onboard to get a product or service online. Thus, each time a product from amazon is bought, you are actually buying it from a registered seller with it. Consequently the merchandise just isn’t directly sold by amazon. Here, amazon is simply website platform which facilitates a gathering place for the consumer to meets a lot of seller and provide various options and value levels for the services or products.
Whereas the Inventory-led websites have specialized but limited range of products and the serious customers may log in to these website for the specific range of products, 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 Arena
Most of the marketplace players have anchor sellers on panel, who are either their subsidiary entities or possibly a large enterprise who may have inked privileged handles them which will help them offer bargains or discounts towards the customers. This could add 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 frequently discover that some merchandise is available on the website at 40% -60% discounts that is even challenging for the maker to supply. You frequently discover that you can find 40-50 sellers for the buy books online Mumbai 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 the products, thereby also frustrate these multiple genuine sellers to arrive at the shoppers making use of their honest pricing offers.
Nearly all e-commerce players are stored on the verge of re-discovering their business models and dream to become profitable sooner. The truth is, none are already capable of seeing anything at all in profit thus far. 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 a lot more to lock belts and keep solve this riddle lest they perish within the race towards the survival in the fittest.
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