In: Accounting
It works in 2 major ways but both ways have to have an efficient
logistics system in place
1st way: Delivery of product by seller
In this case the seller is in possession of the product to be
delivered. These products are dispatched as per regions. There's
always a logistics company involved with the seller comany. These
logistics companies like DHL, Bluedart or FedEx delivers the
products to the customer.
2nd way: Delivery of the product via 3rd party
This is a very safe and cost effective way. The seller usually has
a couple of affiliates or 3rd party vendors who partner with these
online shopping sites. Then when a person places the order, the
order is directly fulfilled by these affiliate vendors. Mostly
vendor systems works well as the vendors are based out of the same
geographic location where the product is supposed to be
delivered.
Amazon has both the systems in place, so does Snapdeal. Ebay also
operates with both the systems. I'm not very certain about
Flipkart.