4 Reasons why Flipkart giving high discounts on big billion sale



Have you ever thought of e-commerce websites like Flipkart and Amazon and snapdeal, why they are giving huge discounts on various sales such as Flipkart big billion days, amazon great India sale and snapdeal’s unbox Diwali

We all shops from these e-commerce websites but ever thought of these

Even some of the people among us would have been thought about this

Even if you haven’t thought of

Just think now

Ha Ha now you have a question in mind

I am here to give you a solution to this question

There are many reasons behind this business strategy

  1. To increase customer base

By intense advertising and huge discounts, they will capture more loyal customers

Let’s explain this by taking an example

India is the second most populous country with a population of more than 1 billion but only 40% of the population uses e-commerce websites

The peoples  who are not using e-commerce websites are mostly,  Those  who are feared of shopping online and illiterate people

And other people who never heard of online shopping

These huge discounts on various products and advertising them on magazines, newspaper, channel etc create an urge to try these e-commerce sites

As they are new to these e-commerce sites cash on delivery ( cod ) becomes a helping hand for them. This cash on delivery option, timely delivery  and return policies reduce some fear in them

After first purchase from these e-commerce sites. If they found these e-commerce sites are legit.

they would become a recurring customer for them

These customers will also suggest other people like them buy from these e-commerce sites and also share their good experience with others

This indeed increase their customer base

That’s why these e-commerce websites are giving extra discount and cash back to new customers and to keep these customers with them


  1. To establish their e-commerce company and to become a billion dollar company

As mentioned above

By increasing their customer base, They can increase the net worth of the company.

It’s common that every company/startup has the aim to make their company a billion dollar company

Most of the startup and e-commerce site owners are paper billionaire today which means based on the shares they own in the company, They are worth  x dollars, but to encash that money

They need to sell their shares, so he will get actual money in hand

Even if they are at loss today, they will surely grow in future

As there is a great competitor for Flipkart, That is Amazon so the loss is expected to increase till 2020 as shown in times of India

You can check the loss report of Flipkart here 

  1. To attract investors

For more expansion of their business, they need more money

For this, they need more investors.

Investors will only think for long-term benefit.

For them turn over is more important than profit, if the e-commerce website generate more turn over

Then it’s a good indication that this business will boom in future

This is what owner and the investor need in a business

  1. Money invested by investors

Entrepreneurs don’t want the money to be invested in the savings account in the bank for a meagre interest, they want to double or triple the money, the investors had been invested

Now it’s your turn

I have a question for you

Do you know any of these points before reading this article


Do you know any other points why e-commerce sites like Flipkart giving high discounts on big billion sale, Diwali sale, and other sales

If you know any other points

Just comment below

Let me know it


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