Jo DIKHTA Hai wo BIKTA HAI !!!

100% FDI in ECOMMERCE BUT BUT BUT NO DISCOUNTS FOR MARKETPLACES ??? Will Customers still BUY ONLINE ??

Convenience, COD, Easy returns and delivery to door-step are some factors which were underplayed when ECOMMERCE was launched to attract the EYEBALLS of Customers. DISCOUNTS were PUSHED and PRICES dropped.

Its a popular belief, provide a UNIQUE Service or PRODUCT and Customer is more than happy to pay extra for it. Well Prices can be REDUCED by anyone !!!

Lets understand Sources of Income for a Marketplace :-

1) Commission from Merchants

2) Advertisement and Promotions run by Merchants

Expenses for Marketplace Model :-

a) Print and Media Ads

b) Discounts to Customers

c) Lead Generation Commission to Cashback websites

As per new Policy "DISCOUNTS to CUSTOMERS" should NULLIFY and no SINGLE MERCHANT should be selling more than 25%

Factors which will continue Discounts and Growth of Ecommerce Market :-

1) Earlier Marketplaces were hunting for CUSTOMERS offering them DISCOUNTS. Current Scenario is Marketplaces hunting for SELLERS to sell on their website. So as it SELLER is KING.

2) Commission charged by Marketplace can be brought down  to SUB-ZERO levels. Since early 2016 reduction of COMMISSION in top-selling categories is clearly visible to drive sales. Transfer Price concept is another process where Seller just provides PAYOUT to be recovered from Marketplaces.

3) Jo DIKHTA Hai wo BIKTA HAI !!!
Marketplaces moving towards Advertisement Platforms asking and providing SELLERS options to Advertise and opt-in for discounts for Homepage & Lightning Deals (Flipkart & Amazon fall in this Category)

4) Point of Discounts - at Invoice level or future Cashback - no clear definition (Paytm will continue to take advantages of future Cashback directly to wallets). Don't understand why Shopclues is not ulitizing the 'Cluebucks' which they provide.

5) Cashback websites like CASHKARO.COM will see increase in COMMISSION rates to divert more traffic to MARKETPLACES. The Customer in turn will continue getting pass-backs from these affiliated websites.

6) Cloudtail and WS Retail have already slowed down and will even reduce down the line. However, immediate impact may be strong.

In the end, its a re-think and re-vamp of DIGITAL and PRINT MEDIA Ad's by BRAND & MARKETING MANAGERS. Now it needs to move from the CONCEPT of DISCOUNTS at BROAD Level to PRODUCT/CATEGORY oriented focus to ATTRACT EYES of the Indian ONLINE Customer.

Jo DIKHTA Hai wo BIKTA HAI !!!