Festive season sales: Ecommerce companies Amazon & Flipkart hand over discount baton to brands
India’s top two ecommerce marketplaces, Amazon and Walmart-owned Flipkart, have steered clear of deep discounting and influencing prices of products in the biggest online sale of the year that’s currently ongoing, said several companies that sell their brands on the platforms.
This follows the tightened foreign direct investment regulations that came into effect in February. The marketplaces asked companies to offer the lowest possible price to help revive demand, said senior executive ..
“They (marketplaces) had also committed that their prices will be maintained and no product will be sold below the net landing cost,” said one of the executives, asking not to be named. The landing cost is the price at which the sellers buy products from the brands.
Brands Dropped Prices
“Sellers have added extremely small profit margin on the net landing cost, which has ensured prices are low,” said one of the executives. The executives said brands were under pres ..
The online price drop is entirely funded by us and still we are making some profit,” said Avneet Singh Marwah, CEO of online-focussed TV maker Super Plastronics, which sells Kodak and Thomson televisions. “We decided to offer such low prices due to poor demand this year. Business has peaked now.” The CEO of an online-focussed brand said this marks a switch from previous practice. He said sellers earlier would even sell below the net landing cost of a product with indirect support from marketplac ..
Amazon and Flipkart kicked off festive season sales last weekend and there will be two-three more such events in the run-up to Diwali toward the end of October. Brands said they have expanded business this year by 60-100% over last year’s first festive sale, signalling a revival in demand and consumer sentiment at least on ecommerce platforms. The positive start has calmed fears that the economic slump would keep demand low.
The festive season starts with Onam in Kerala, extends throug ..
Brands Dropped Prices
“Sellers have added extremely small profit margin on the net landing cost, which has ensured prices are low,” said one of the executives. The executives said brands were under pres ..
The online price drop is entirely funded by us and still we are making some profit,” said Avneet Singh Marwah, CEO of online-focussed TV maker Super Plastronics, which sells Kodak and Thomson televisions. “We decided to offer such low prices due to poor demand this year. Business has peaked now.” The CEO of an online-focussed brand said this marks a switch from previous practice. He said sellers earlier would even sell below the net landing cost of a product with indirect support from marketplac ..
Amazon and Flipkart kicked off festive season sales last weekend and there will be two-three more such events in the run-up to Diwali toward the end of October. Brands said they have expanded business this year by 60-100% over last year’s first festive sale, signalling a revival in demand and consumer sentiment at least on ecommerce platforms. The positive start has calmed fears that the economic slump would keep demand low.
The festive season starts with Onam in Kerala, extends throug ..
The festive season starts with Onam in Kerala, extends throug ..
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