Marketplace model in E commerce

So I am here yet again to talk about the e commerce, ever wondered how the e commerce model works ? Well initially the the e commerce companies use to store inventory with them and sell them to the customers . This had two advantages : One the e commerce companies were able to strike a better deal because of bulk purchasing ,Second customer satisfaction and fulfillment rate was also controlled since the e commerce companies had control over the inventory. But with the regulations in place and e commerce companies looking for more funds to grow they switched to the marketplace model.

In the marketplace model the e commerce companies provide platform where the buyers and the sellers meet. The e commerce companies do not hold any inventory. When the customer places an order the information is sent to the seller, now the seller has three options , First he ships the product by himself, second he just packs the product the person from e commerce companies come  and pick up the product,Third he stocks the product in the warehouse of the ecommerce companies , so that order is fulfilled by them. When the e commerce receives the the money from the customer they transfer the money to the bank account of seller and this is how the entire cycle takes place.