In accordance with the FDI policy guidelines, “Marketplace style of e-commerce means providing of an i . t . platform by an e-commerce entity on the digital and electronic network some thing being a facilitator between buyer and seller.”
The main feature of the Marketplace model is that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give a platform for clients to get which has a large numbers of sellers onboard to purchase a product online. Thus, each time a product from amazon is bought, you might be actually buying it from your registered seller by using it. Therefore the merchandise just isn’t directly sold by amazon. Here, amazon is simply website platform which facilitates a celebration spot for a person to meets a large number of seller and give various options and cost levels for any product or service.
Whereas the Inventory-led websites have specialized but limited selection along with the serious customers may sign in about bat roosting website for any specific selection, 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 plus a Level Playing field
Most of the marketplace players have anchor sellers on panel, who’re either their subsidiary entities or a large enterprise that have applied for privileged works with them which will help them offer money saving deals or discounts on the customers. This will likely include 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 with a pre-agreed arrangement.
It’s easy to see that some goods are positioned on the web site at 40% -60% discounts that’s even hard for producer to offer. It’s easy to see that you can find 40-50 sellers for any buy comic books 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 the products, thereby also frustrate these multiple genuine sellers to reach the customers making use of their honest pricing offers.
Just about all e-commerce players are on the verge of re-discovering their business models and desire to become profitable sooner. The truth is, none have been able to see a penny in profit so far. Many big and promising e-commerce and unicorn players have perished because of unsustainable losses and lots of have been soldout to other people. Year 2017 would see more to fasten belts and continue to keep solve this riddle lest they perish inside the race on the survival with the fittest.
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