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

The primary feature of this marketplace model would be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give a platform for clients to have interaction having a large number of sellers onboard to get a product or service online. Thus, each time a product from amazon is bought, you are actually purchasing it from the registered seller from it. Consequently the product just isn’t directly sold by amazon. Here, amazon is just a website platform which facilitates a gathering location for a person to meets a lot of seller and gives various options and price levels for the services or products.
Whereas the Inventory-led websites have specialized but limited selection and also the serious customers may signing in to the telltale website for the specific selection, like 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 as well as a Level Game
The majority of the marketplace players have anchor sellers on panel, who’re either their subsidiary entities or perhaps a large enterprise who may have entered into privileged deals with them which assists them offer money saving deals or discounts for the customers. This could incorporate 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 often discover that some items are entirely on the web site at 40% -60% discounts that’s even challenging for the maker to make available. You often discover that there are 40-50 sellers for the medical books but excepting one anchor seller, fat loss to make available such exciting discounts or offers. They even can mask other seller completely and corner almost entire requirement for they, thereby also frustrate these multiple genuine sellers to arrive at the customers can use using their honest pricing offers.
Virtually all e-commerce players are on the verge of re-discovering their business models and desire to become profitable sooner. Truth be told, none have already been capable of seeing a penny in profit so far. Many big and promising e-commerce and unicorn players have perished due to unsustainable losses and several have already been soldout to other people. Year 2017 would see many more to lock belts and continue to keep solve this riddle lest they perish within the race for the survival from the fittest.
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