E-Retail Business Models

 

Open Market-Place ( OMP )  is a technology-based asset light model. It merely hosts sellers of new, and in small percentage, used goods and connects them to the buyers. E-bay has adopted this model. It does not handle logistics beyond alerting its partners in this space by an automatic process. When goods move from buyers to sellers, they do not pass through an e-bay warehouse. It is based on trust. It is suitable for a mature eco-system. It is It is merely a hosting platform.

Managed Market-Place (MMP )

It controls delivery and returns and does not deal in used goods. It helps to control customer experience and is more suitable for India. In this model, the e-retailer does not own the products but controls delivery, quality and returns.

Inventory-led Model

The e-retailer here owns the inventory and controls delivery and quality too.

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