4 REASONS WHY E-COMMERCE SITES LIKE FLIPKART, GIVING HIGH DISCOUNTS ON BIG BILLION SALE, DIWALI SALE AND OTHER SALES
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
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
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
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
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
Or
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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