Based on 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 act like a facilitator between buyer and seller.”

The key feature of this marketplace model is that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. supply a platform for purchasers to get which has a large numbers of sellers onboard to get an item online. Thus, each time a product from amazon is bought, you might be actually acquiring it from your registered seller by using it. As such the product or service is not directly sold by amazon. Here, amazon is simply website platform which facilitates a meeting location for someone to meets a large number of seller and offer various options and expense levels to get a products or services.
Whereas the Inventory-led websites have specialized but limited range of products along with the serious customers may log in to those website to get a specific range of products, for example caratlane.com for precious jewellery, booknest.directly into buy books, swiggy.com for ordering food, 1mg.com for medicines etc.

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Anchor Seller as well as a Level Arena
Almost all of the marketplace players have anchor sellers on panel, who’re either their subsidiary entities or perhaps a large enterprise that have entered into privileged works with them which will help them offer bargains or discounts on the customers. This will likely incorporate a higher discount on products, Free postage, compensation for sales returns etc. The losses incurred on these deals /services are compensated from the Marketplace Player within a pre-agreed arrangement.
You frequently realize that some merchandise is entirely on the website at 40% -60% discounts that is even hard for the maker to make available. You frequently realize that you can find 40-50 sellers to get a buy books online Bangalore but excepting one anchor seller, no one is able to make available such exciting discounts or offers. They will mask other seller completely and corner almost entire interest in they, thereby also frustrate these multiple genuine sellers to achieve the shoppers making use of their honest pricing offers.
Almost all e-commerce players are saved to the verge of re-discovering their business models and dream to become profitable sooner. The reality is, none have already been capable of seeing a penny in profit to date. Many big and promising e-commerce and unicorn players have perished on account of unsustainable losses and lots of have already been sold out to others. Year 2017 would see additional to lock belts and go on to solve this riddle lest they perish within the race on the survival with the fittest.
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