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How Do Online Indian Stores Offer Products At Huge Discounts

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indian ecommerce discountsIf you have ever purchased anything online; be it mobile phones, cameras, TVs or even incidental items like beauty products and spices, one thing you will notice is that they often come at cheap, even irresistible rates that no offline retailers can offer. The discounts received can be much greater when shopping from large stores like Myntra, Flipkart, Yebhi and Zovi.

Not forgetting that these sites usually allow buyers to use coupons, such as those from RetailMeNot, CouponCabin, Coupon Lava etc. to further cut down on their shopping costs. One of the best places to look for Flipkart, Yebhi, Myntra and Zovi coupons is from CouponLava.com. Moreover, for new buyers who have never shopped online, many of these online Indian stores will provide signup bonuses in the form of coupon vouchers sent to buyers via mail that immensely help to reduce the price of whatever you intend to purchase. A website like Myntra sometimes gives signup bonuses of up to Rs 1500 to new shoppers! Buyers also get to enjoy free shipping of ordered merchandise and thanks to the cash on delivery system that many Indian online stores are now adopting; you will only pay for the products once you have received them. What’s more is there’s always a ‘No questions asked return policy’ on purchases, hence if the items don’t quite meet your expectations you can simply return them for a replacement or refund.

There are many reasons why online stores in India go to such extent to ensure customer satisfaction. The most prevalent reason is to help change the conservative mindset of Indians towards online shopping. A good number of Indians are still cynical about the whole idea of buying things online. Therefore online stores have to do a great deal of marketing and sales promotion to entice them to consider purchasing something over the internet. In addition, Indian online websites take into consideration the fact that many potential buyers may not necessarily have credit cards or debit cards for online purchases. This is essentially why online stores are opting for the Cash on Delivery system, to ensure no willing buyers are left out.

Competition is yet another reason why most Indian stores are doing all it takes to win the hearts of online shoppers. Many online Indian stores have been springing up in recent years and competition is getting stiffer as we speak. Consequently every online seller is looking for ways in which they can stay ahead of their competitors, remain in business and make a profit.

But with all these going on, one can’t help wondering how are these online stores making money? Or rather, are they really making money? Well, the answer is a resounding ‘YES’ and given below are the reasons how.

How Online Stores Are Making Money?

1. To start with, you need to take into account that by operating online, these stores do away with the need to work with middlemen who often increase the overhead costs of offline retailers, making it easier for them to make profits. Starting an ecommerce business is much cheaper than building and running brick and mortar stores. Thus, due to the comparably little expenses incurred, online stores are able to lower their prices substantially.

2. Keep in mind that an online store has a larger ‘geographical radius’ than a physical store, which can only operate within their location. Due to the larger reach of online stores, they can lower their prices and still make profits because of the higher volume of purchases. But for offline retailers, they don’t have the same level of sales that online stores have, hence are forced to increase their gross profit margin. So that even if they sell less volume, the profits made can still support the business.

3. Lastly, most Indian online stores use drop shipping suppliers. These are suppliers that hold and ship the stock to the online consumer directly. These suppliers relieve the need of large, expensive warehouses to keep the stock which is unavoidable for offline retailers. All these work to their advantage, enabling them to make profits even though they offer huge discounts.

Nonetheless, even when online Indian stores incur a loss caused by the huge discounts they offer their buyers; it still works for their benefit, as they win many loyal customers that the business can rely on for future success and growth.


By

Himanshu is a technical expert. His enthusiasm for videos and softwares has made him experiment various avenues to identify the software that provides the right support for downloads.

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    13 Comments

    • Preet

      Drop shipping sounds interesting, I don’t know exactly what it is but sounds similar to Amazon FBA… well one thing is certain, I don’t blindly buy online, I only buy after doing some research!

    • Sreenivas

      The market place model adopted by major etailers like Flipkar,Amazon,Snapdeal are all heavily dependent on Discounts. But the trend seems to change now as they can’t survive with the same model for so long by burning their own cash..

    • Manali Parashari

      Hello Himanshu, Thanks for your information, Now a days online shopping is a way to purchase goods at huge discount and simplest way to purchase.

    • partyclasse123

      online market has get a new height in last two or three years and most contributions are goes to some of the site like eBay, flip cart ,online home shop.it really give a great relief to the users.

    • sanved

      Thats the reason they give so much discount ! anyways i am happy to get these things for such a price !

    • Mike Reeson

      I had no idea that those types of online stores would accept coupons from various places. And because if the low cost on the site, I’m going to try to check them out. Especially since their return policies are so lenient.

    • Giriraj

      Indian e-commerce business is increasing at an alarming pace. Recently, Zovi acquired Inkfruit, the deal broke out for $10 million.

    • Harry

      Yes, I have noticed this a lot. Online websites sell products at a very reasonable rate and this does not hurt their pockets. They make money from the extra discounted sales as well. I think there is a problem with the quality of products offered because they too cheap.

    • Paras Sharma

      I completely disagree with what Himanshu has to say on this front.

      The product which are sold by many of the e-commerce site are of no use, as most of them are unbranded and named after their own brand. Recently i saw a shoe deal running around and was amazed to see how a 200 rs shoe available at Nehru place market in New Delhi is sold at 499+, these shoes are crap will not sustain more than 2-3 months if you wear daily. Similar is the story with other unbranded things that are sold at sites like Tradus.

      Did anyone ever noticed Reebok, Nike etc branded offers of similar type. i never saw any massive discounts on branded products online.

      if you are fashion conscious person and willing to try out clothes, shoes etc for once or twice then it is good otherwise all this crap is good for nothing.

      Note: this remark is limited to certain areas of e-commerce industry and is not implacable to all.

    • riyash871

      Now a day online shopping is a way to purchase goods at huge discount and simplest way to purchase . thanks for share …

    • Mohammed Abdullah Khan

      I never visited coupon lava till date coz I mostly get promo codes promoted on fb groups.
      How ever online shopping is more likely cheaper compared to offline shopping. But I guess online shopping is little bit un secure if one is unaware of how to shop.

    • chiru

      Hi Himanshu,
      now a days online shoping plays a major role in e- market to buy any item starting from pen or greeting card to bikes, cars etc..it is because the online shopping is just a click away..
      Surprisingly they are giving huge discounts also..
      Thanks for posting..

    • Rahul Kashyap

      Great post bro keep it up 🙂

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