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

The primary feature of this marketplace model would be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for customers to activate having a large number of sellers onboard to buy something online. Thus, whenever a product from amazon is bought, you are actually purchasing it coming from a registered seller by using it. As such the item is just not directly sold by amazon. Here, amazon is just a website platform which facilitates a gathering location for a consumer to meets many seller and provide various options and price levels for the service or product.
Whereas the Inventory-led websites have specialized but limited range of products and the serious customers may sign in to the telltale website for the specific range of products, such as 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 Arena
Most of the marketplace players have anchor sellers on panel, who are either their subsidiary entities or possibly a large enterprise who have inked privileged handles them which helps them offer money saving deals or discounts towards the customers. This might add a higher discount on products, Free postage, compensation for sales returns etc. The losses incurred on these deals /services are compensated through the Marketplace Player within a pre-agreed arrangement.
You regularly realize that some items are available on the site at 40% -60% discounts that is even challenging for producer to offer. You regularly realize that there are 40-50 sellers for the buy books online Bangalore but excepting one anchor seller, no one is able to offer such exciting discounts or offers. They will mask other seller completely and corner almost entire requirement for they, thereby also frustrate these multiple genuine sellers to reach the customers with their honest pricing offers.
Virtually all e-commerce players are on the verge of re-discovering their business models and aspire to become profitable sooner. Truth be told, none have already been able to see a penny in profit to date. Many big and promising e-commerce and unicorn players have perished because of unsustainable losses and lots of have already been soldout to other people. Year 2017 would see more to fasten belts and continue to keep solve this riddle lest they perish within the race towards the survival with the fittest.
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