In line with the FDI policy guidelines, “Marketplace label of e-commerce means providing of the it platform by an e-commerce entity over a digital and electronic network to behave being a facilitator between seller and buyer.”
The primary feature of this marketplace model could be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. provide a platform for purchasers to interact using a large number of sellers onboard to buy something online. Thus, whenever a product from amazon is bought, you’re actually buying it coming from a registered seller with it. As such the product or service isn’t directly sold by amazon. Here, amazon is just a website platform which facilitates a gathering spot for a consumer to meets a large number of seller and gives various options and expense levels to get a product or service.
Whereas the Inventory-led websites have specialized but limited selection and also the serious customers may sign in to these website to get a specific selection, such as 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 along with a Level Stage
A lot of the marketplace players have anchor sellers on panel, that are either their subsidiary entities or perhaps a large enterprise who’ve inked privileged handles them that helps them offer great deals or discounts towards the customers. This could include 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 under a pre-agreed arrangement.
It’s easy to see that some products are on the web site at 40% -60% discounts which is even hard for the maker to provide. It’s easy to see that you will find 40-50 sellers to get a children books but excepting one anchor seller, no one is able to provide such exciting discounts or offers. They even can mask other seller completely and corner almost entire requirement for these items, thereby also frustrate these multiple genuine sellers to reach the customers using honest pricing offers.
Nearly all e-commerce players are saved to the verge of re-discovering their business models and desire to become profitable sooner. The truth is, none are already able to see anything at all in profit up to now. Many big and promising e-commerce and unicorn players have perished due to unsustainable losses and several are already sold out to other people. Year 2017 would see many more to fasten belts and keep solve this riddle lest they perish in the race towards the survival from the fittest.
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