Amazon and Flipkart recently concluded their month long festive sales where they offers huge discounts on a range of products including smartphones, electronics and other goods.
Amazon and Flipkart recently concluded their month-long festive sale and the major attraction of these sales was huge discounts on smartphones. People got iPhone 11 for as low as Rs 30,000. Many people got discounts on apparel and other products as well. However, have you ever wondered how these e-commerce platforms are able to offer discounts on key products? If yes, then we have an answer for you. These e-commerce platforms try to directly collaborate with the manufacturers, be it big or small, to get the products. They often nudge the producers to offer a discount to encourage sales as well.
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Amazon and Flipkart often promote local businesses and Micro, Small, and Medium Enterprises (MSMEs) from across the country. This leads to a mutually beneficial relationship that acts as a catalyst for the businesses. While the MSMEs get a national platform to sell their goods thus eliminating the middlemen, e-commerce sites get products at comparatively cheaper prices and are thus able to facilitate the discount.
These two major e-commerce firms are also focussing on women entrepreneurs from tier-2/3 cities to bring in goods at cheaper prices on their platforms. Since the e-commerce platforms get the products directly from the producers/manufacturers, they are able to maintain their commissions despite facilitating hefty discounts.
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Manish Tiwary, Country Manager -India Consumer Business, Amazon India, told Zee Business that small and medium businesses, startups, artisans, and women entrepreneurs offered a wide selection of products to customers across India. He said that the number of sellers from tier 2-3 cities has been on a rise. Amazon also witnessed a more than 44 per cent increase in new MSMEs sellers on its platform this year.
Also, product listing on e-commerce sites like Flipkart and Amazon often gets multiple orders to the sellers that translate into bulk orders if taken together. This allows businesses to offer discounts on each order.
