back to the seller or it would be thrown away but if it is fairly usable it could either end up back online or it could be featured in something called the refurbished section at the reliance retail store such that all these written products could be available at a discount for the customers who are visiting the store and these products could be made available at a dirt cheap price in business terms it's called the throwaway price which is a pricing that is specifically meant to move the product out of the inventory and guess what this throwaway pricing strategy will attract more people to the store by acting as a lost leader to get them to buy more from the store eventually profiting reliance again even in the return shipment process and you know what i also see a possibility wherein reliance will tell you that if you shop for NUMBER_TOKEN rupees at the store you can access the refurbished section then you can get jbl speakers and clothes at a NUMBER_TOKEN discount and this is attractive enough to get people to spend more which will rapidly move out inventory this is the superpower of integrating a high traffic online platform with a high traffic offline platform like the brick and the moltar store but fortunately or unfortunately this luxury is available only for reliance and not for amazon now this begs the question when a billion dollar company like reliance can build NUMBER_TOKEN NUMBER_TOKEN plus brick and mortar stores why can't a trillion dollar company like amazon do it i mean they've got so much cash to burn they could just build one amazon retail store right next to every reliance retail store right well not really this is what brings me to the third segment of the episode and that is government regulation and as it turns out from NUMBER_TOKEN onwards the government regulations on foreign direct investments have become more and more strict and now international companies are not allowed to own more than NUMBER_TOKEN of the local brick and mortar supermarket chains therefore it is extremely difficult for amazon to build a supply chain as big or as profitable as reliance apart from that one of the most profitable wings of amazon is on the verge of being destroyed and if this happens there is also a possibility that amazon might be forced to quit the indian markets to tell you about it if you look at amazon's operations in india they operate with two models the first is a marketplace model and the second is the inventory model the marketplace model is a model wherein there are independent buyers and independent sellers and amazon merely acts as a platform to connect the buyers from the sellers whereas in the inventory model amazon is going to place a bulk order with the seller eventually having the bargaining advantage to place the order at a dirt cheap price and then amazon will mark up the price and then sell it to the consumers by keeping the inventory to itself for example if a bookseller makes a book at NUMBER_TOKEN rupees and sells it on the e-commerce site at NUMBER_TOKEN rupees in this case if the e-commerce company acts as a platform it will generate a revenue of NUMBER_TOKEN-NUMBER_TOKEN rupees but this includes the packaging cost and the transportation cost for national delivery which eventually reduces the scope for commissions but if the e-commerce company operates with the inventory model the platform will buy NUMBER_TOKEN NUMBER_TOKEN books from the bookseller at once and will use its bargaining power of a bulk order to buy the book at just NUMBER_TOKEN rupees per piece after that all these books will be kept in the warehouse and then it will be listed in the e-commerce site at NUMBER_TOKEN rupees so if you
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