Skip to main content

How and why do the E-market places give huge discounts???

The major E-commerce sites like Amazon, Snapdeal, Flipkart etc offer huge discounts and deals to attract customers. The huge discounts given on the products in these E-commerce sites cannot be found at the same rate in the retail market or brick and mortar shops.

The question here is how can these E-commerce sites give such huge discounts and will they able to do it in the future? These are some of the reasons as to why and how the E-commerce sites give huge discounts:

The major reason being the support from investors who invest in these major E-commerce sites. The major national and international brands and business ventures invest in these E-commerce sites. 

The vendors who would like to sell their products on a less margin supply their products to the E-commerce sites in daily deals etc. The margin can be less on each product but the overall profit goes up based on the quantity. The E-commerce sites also sell the products on marginal profit.

The major brand sellers willingly sell their products to these E-commerce sites on a marginal profit. The advantage for these brand sellers is the advertising of their products.

The E-commerce sites give such huge discounts to attract a customer and make that customer a lifelong customer to the E-commerce site. The potential gain from each customer varies from thousands to lakhs if they are attracted to an E-commerce site.

The E-commerce sites even though they may not gain huge profits in the beginning or for some years they do worry much about that. These E-commerce sites look to attract as many online customers as possible so that they buy products in their sites. Even if there are no discounts, these customers will get used to buy in these E-commerce sites.

The question is 'Will these E-commerce sites be able to give the same discounts in the future?'. Many of the E-commerce experts predict that these E-commerce sites will not be able to give these kind of discounts in the future. Once the E-commerce sites are able to attract their share of online customers they will not be giving such benefits.And another reason being the government norms restricting the share of sales of an invidual vendor to the E-market place.

As there are many advantages other than the discounts, the sales in these E-commerce sites will not be reduced. And let us hope that the E-commerce sites continue to give the same discounts in the future.

SELLinALL is an E-commerce site/software which can be used to list products in major E-commerce sites like Amazon, Ebay, Flipkart, Lazada groups, Shopclues, Etsy etc.    

Popular Posts

5 Major challenges faced by e-Commerce sellers and ways to overcome it!

Based on a report by Google and Temasek Holdings, Southeast Asia’s (SEA) digital market could exceed US$200 billion before 2025. Southeast Asia’s digital economy is forecast to triple its size in the next 5 years. Read more on the challenges faced as a seller in the E-commerce marketplace, to help you decipher and be part of this immensely growing economy. E-commerce stores are on the rise due to a numerous reasons.  As far as market association is concerned, E-commerce sites already have an existing network of buyers. So, selling your products becomes relatively easy as branding and advertising is already taken care of.As  Sigmund Freud 's had rightly said  “ I carefully consider my decisions as everything comes with pros and cons! ”  Marketplace Management When it comes to South-East Asian E-commerce market, the most underestimated struggle is  Fragmentation  i.e. there are a number of e-commerce platforms in ASEAN countries attracting significant traffic, making

Pros and Cons of Cash on Delivery payment in E-commerce!!!

Cash on Delivery payment in E-tailing is  the most preferred form of payment by the customers these days. Cash on Delivery option is not available in many countries. But some countries in Asia like India, Pakistan, Bangladesh, Vietnam, Thailand, Nepal etc. support Cash on Delivery option in E-tailing. These are the pros of Cash on Delivery payment: Cash on Delivery option is supported by many E-commerce sites in some countries of Asia, India being a part of it. Cash on Delivery (COD) is preferred by online buyers who would like to check the product before paying for it.  This is advantageous for the customers as they can check the product before paying for it. Another advantage of COD is that many people in rural areas of India and many other countries who do not have credit cards and debit cards can buy products online. COD is supported by many E-commerce sites to attract  online buyers who are not comfortable  to reveal their credit or debit card details online. Cons

BE IN LOCAL, GO ON GLOBAL: How to be a local manufacturer and also be global online seller.

The Success of a Manufacturer depends on,  how well his products are purchased by the consumers. The timeline of international trade dates back to the Sumerian Era of Mesphotomien region (around 2000 to 3000 BCE) and then to the Chola Era of Southern India. If we delve deeper into it,  we see the Incense Trade Route is much older than the Silk Trade Route.  The  Incense trade route included a network of a major ancient land and sea trading routes linking the Mediterranean world with eastern and southern sources of incense, spice and other luxury goods (gold, silver, ivory and precious stones) stretching from Mediterranean ports across the Levant and Egypt through Northeastern Africa and Arabia to India and beyond. During the middle ages, the Silk Trade Route has been formed and trade has been established between the Greco-Roman empires with the Chinese and South Indian Kingdoms. After this, the trade has flourished in the early modern and the Later Moden periods betw