Arkrobot

It is a widely known fact for etailers (Ecommerce retailers), Inventory storing, management, manpower and removing unsold goods is a major challenge. Perhaps it is the critical reason why slowly some etailers have either shut shop or shifted to a market place model. However this move helps to slow down the capital burn rate but does not guarantee profitability and sustenance. If we look at successful Ecommerce retails globally, we are given to understand that both models are successful but the Inventory model does have better margins and control over the supply chain than a market place model.

Following a Market place model also means compromising on the delight of online shopping experience for the customers. It also means lower margins for the etailers and a whole lot of money to be burnt in shipping individual products from various merchant locations (Hence you will see them acquiring logistics companies). The only advantage in a Market place model is that of adding thousands of products and merchants overnight and maintaining that growth rate. This however is a double edged sword where merchants may not be qualified properly that may later spoil brand image of the etailer. End of the day, capital burn rate is slower, the innings goes longer and everyone is happy. Oh wait did we forget somebody? The customer? Oh yes, the customer! Well, you know he has no option but to buy from a marketplace and wait for the product to be delivered whenever it gets delivered. And ya, the customer has to bare with receiving 5 products at five different times of the day or sometimes spread over days. But that