In line with the FDI policy guidelines, “Marketplace style of e-commerce means providing of the information technology platform by an e-commerce entity on the digital and electronic network to behave like a facilitator between seller and buyer.”

The principle feature of the Marketplace model is that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give you a platform for patrons to interact with a great number of sellers onboard to acquire an item online. Thus, whenever a product from amazon is bought, you happen to be actually buying it from a registered seller by it. Therefore the product or service is just not directly sold by amazon. Here, amazon is simply website platform which facilitates a meeting area for someone to meets numerous seller and offer various options and cost levels for a services or products.
Whereas the Inventory-led websites have specialized but limited selection and also the serious customers may log in to those website for a specific selection, like 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 plus a Level Stage
A lot of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or a large enterprise that have entered into privileged deals with them which will help them offer cheap deals or discounts to the customers. This may add a higher discount on products, Free delivery, compensation for sales returns etc. The losses incurred on these deals /services are compensated from the Marketplace Player within pre-agreed arrangement.
It’s easy to realize that some merchandise is entirely on the site at 40% -60% discounts that’s even challenging for the maker to offer. It’s easy to realize that there are 40-50 sellers for a buy books online Bangalore but excepting one anchor seller, fat loss to offer such exciting discounts or offers. They even mask other seller completely and corner almost entire need for they, thereby also frustrate these multiple genuine sellers to succeed in the shoppers making use of their honest pricing offers.
Almost all e-commerce players are on the verge of re-discovering their business models and dream to become profitable sooner. The reality is, none have been capable of seeing 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 been soldout to others. Year 2017 would see more to fasten belts and pursue to solve this riddle lest they perish from the race to the survival with the fittest.
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