Flipkart Amazon Discounts 80-90%
The holiday sale of e-commerce companies began at midnight. Understand the math behind offering discounts of up to Flipkart Amazon Discounts 80-90% and how it benefits customers.
This year, Flipkart’s Big Billion Days sale begins on October 8, but for Plus and VIP members, it begins a day earlier, at midnight tonight. This will be in effect until October 15, 2023. Amazon’s Great Indian Festival Sale has also begun for Prime members today. The sale is offering up to a 90% discount. Flipkart Amazon Discounts
Many people will wonder how these companies can offer such a large discount in such a situation. How many sales do businesses make during the holiday season? What strategies do businesses use to boost sales? Is this sale truly advantageous to customers? Before answering these questions, consider the previous years’ sales. Flipkart Amazon Discounts
Let us now hear one by one the answers to the questions. Flipkart Amazon Discounts
- How do businesses afford such large discounts
Before we can understand the mathematics of discounting, we must first understand how Flipkart and Amazon operate. In reality, these companies act as intermediaries, connecting vendors and customers via their platform. These businesses provide platforms for vendors to sell goods via their websites in exchange for commissions on sales. - Any company’s sales goal is to increase sales volume. This expands the customer base. Remember when Jio was offering free 4G internet across India in 2016? Everyone was waiting in line for SIM cards. This was Jio’s strategy for gaining more customers. Similarly, Amazon and Flipkart offer massive discounts to entice customers.
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Flipkart Amazon Discounts - Both the platform and the vendor contribute to the 80-90% discount. During sales, platforms reduce their commission. Let us consider the role of the vendor in the context of clothing.
- Every year, big brands try to clear out old stock by offering discounts, but in order to maintain their brand identity, they can only offer discounts up to a certain point. Flipkart Amazon Discounts
- In such cases, a liquidator purchases a large amount of stock from the company for 20-30% of the retail price. After that, he sells it for a small profit.
- There is no doubt that many products are sold at a loss on online platforms, but they know that once customers become accustomed to purchasing products from them, they will be able to make profits in the long run.
- Many e-commerce companies begin raising product prices just before the sale. They offer a discount on the price, which is actually the list price. Tags are changed, and prices are set much higher than their true worth. As a result, the customer falls into the trap of buying more during these sales. Flipkart Amazon Discounts
- Everyone must have read the profit formula in school. Profit equals selling price less cost price. The cost price means how much the product was made for, and the selling price means how much the product was sold for. If any product is sold in large quantities, then its cost reduces. Manufacturing products in larger quantities reduces costs.
Margins may be low in bulk sales, but earnings increase as volume increases. Things like mobiles, TVs, laptops, and AC are available at such huge discounts only because they are sold in bulk. Due to selling in bulk, the profit of the company as well as the vendor increases. Due to all the above reasons, customers are able to get an 80–90% discount on items in the sale. Flipkart Amazon Discounts
How much money do businesses make during the holiday season
According to consulting firm RedSeer, the country’s e-commerce sector’s gross merchandise value (GMV) is expected to rise by 18-20% to Rs 90,000 crore during the festive season this year, up from Rs 76,000 crore last year. This year, approximately 14 crore people are expected to shop during the festive season sales. Flipkart Amazon Discounts
Is this sale truly beneficial to customers
We need many products and services every day. So if essential items are available at discounted prices, why say no to it? Now let us look at its other aspect. If you are buying anything because it is available at a discount, then there is no point in buying it. In a way this is a waste of money. Therefore, how beneficial the sale is depends on yourself.
