Role of offers and discounts in online Shopping, Ecommerce Trade
To begin with, no matter which class of society we represent, our eyes light up the moment we hear or see the term “offer”. It becomes all the more interesting when we see some ads pop-up while surfing the internet. Some of us love to be as frugal as possible and go to the extent of relentlessly looking for better deals. These Discounts and offers have been on the forefront of ecommerce trade.
Let’s see this, earlier discounts and offers were limited to particular time during the year. But today since the evolution of ecommerce trade, every site has began to offer discounts in short periods through-out the year. There is also another term that has become one of the critical facet of today ecommerce trade and that is promo-codes. These are nothing but part of marketing strategy that companies role out for their customers. It would simple say use this promo code to get an X % off on a particular product.
From the time Ecommerce has become an integral part of our daily lives, a day does not pass without us seeing an offer from the score of websites we have. But most of us try to look for offers in the segment of our choice.
We have these big aggregators like Amazon, Flipkart, Ebay, Shopclues demand goods from their suppliers after forecasting sales. One of the key driving force for these big online chain is to make more number of people hit their system and take a look at the offers. There is a lot of psychological aspect of defining these offers and promo codes. One of the critical aspect big companies keep in mind before rolling out the offer is not to sabotage the actual profit of the product line which in itself is a challenging task.
Sales team often revise their target if they find the offer is not working on the ground. They try to beautify the offer like adding more value to customer like free-delivery, gift-wrapping, extra discount through gift code etc.,
In terms of impact of these sales, offers, discounts, gift coupons on the Ecommerce industry. This is still a burning question. There are two aspects to this. One the customer stands to gain given the range of offers he has to pick an item from.
This invariably boost the sales and overall ecommerce industry will continue to benefit. Two, let’s for a moment think about company like Flipkart and you will know they aren’t still profitable. Over the last few years they have hugely invested in Marketing, bringing in the right set of people into management and operations especially from B schools, added to this imagine their army of people delivering products on the ground relentlessly.
Nevertheless, all this is good news for ecommerce trade because it is pegged for turnover more than $50 bn dollar by end of 2020. Individual companies will have to find ways to make profit but at the moment they just want to win the race.