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

The key feature of the Marketplace model could be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for clients to activate using a great number of sellers onboard to acquire something online. Thus, when a product from amazon is bought, you might be actually acquiring it coming from a registered seller by using it. As such the item is not directly sold by amazon. Here, amazon is just a website platform which facilitates a meeting spot for the consumer to meets a large number of seller and provide various options and price levels to get a products or services.
Whereas the Inventory-led websites have specialized but limited selection as well as the serious customers may signing in to the telltale website to get a specific selection, for example caratlane.com for precious jewellery, booknest.into buy books, swiggy.com for ordering food, 1mg.com for medicines etc.

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Anchor Seller as well as a Level Playing field
Almost all of the marketplace players have anchor sellers on panel, who are either their subsidiary entities or even a large enterprise who may have created privileged handles them which will help them offer bargains or discounts towards the customers. This might add a higher discount on products, Free delivery, compensation for sales returns etc. The losses incurred on these deals /services are compensated by the Marketplace Player within pre-agreed arrangement.
It’s easy to see that some merchandise is positioned on the web site at 40% -60% discounts that’s even hard for the manufacturer to provide. It’s easy to see that you’ll find 40-50 sellers to get a books online but excepting one anchor seller, fat loss to provide such exciting discounts or offers. They even mask other seller completely and corner almost entire demand for the products, thereby also frustrate these multiple genuine sellers to succeed in the customers can use using honest pricing offers.
Nearly all e-commerce players take presctiption the verge of re-discovering their business models and aspire to become profitable sooner. Truth be told, none happen to be capable of seeing a cent in profit thus far. Many big and promising e-commerce and unicorn players have perished because of unsustainable losses and several happen to be sold out to others. Year 2017 would see a lot more to fasten belts and pursue to solve this riddle lest they perish in the race towards the survival in the fittest.
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