Sunday, 13 September 2015

When to and When not to buy in e-commerce websites???

As every one knows there is a growing interest in shopping on e-commerce websites such as Flipkart,snapdeal,paytm,amazon,ebay,etc...in India.The growth of these websites is exponential for the past 3 years especially in India.People are overthrown with joy,because of attractive offers provided by these websites to attract the lucrative customers.If you give a look behind the scenes,you will see a mind blowing strategy created by professionals working in these industries based on customer behavior/mood analytics.The offers are nothing but a camouflage in order to attract the massive population towards them and do the shopping,which in turn reduces the profitability of the brick and mortar stores present at your locality.

They practically use the greed factor of human to attract towards them.In the long term the brick and mortar stores at your locality will stop selling and move on to some other business.This is the turning point of the e-commerce website's,when they grab the opportunity and start to over price the products using the advantage of monopoly and demand.

Many people say that these offers are just an eye wash.Because they see it in a different way,such that the websites over price the products and give offers, which becomes the same price of the product available for sale outside.But this concept is wrong.The real concept is that the above mentioned e-commerce websites gets funding from Angel investors and other financial institutions outside of India.For example snapdeal is getting 400 million dollar funding from soft bank,japan , paytm is getting 575 million dollar funding from Alibaba(china) , Amazon is pouring 2 billion dollar by itself into India.So practically the offer prices are nothing but the cash support given by these foreign investors.The discounted money will be paid to the dealers from the capital provided by those   foreign investors.The foreign investors are providing that much amount of external funding to make the internet game to act as a monopoly.So now who is taking the loss??? Obviously foreign investors.But once the market becomes monopoly who will carry the profits?That is also obviously foreign investors.

So,what must be our strategy to counter this approach or make use of the greed factor used by those analytics and reverse the same process against them at a certain point of time. This is the booming period of the e-commerce industry.This is the peak time they give huge offers for the products.So,customers should check the price and offers carefully for certain products and buy it from those websites.But,they should not buy everything with closed eyes believing that those website given rates are true.At a certain point of time you would feel that the offers on those particular website is not lucrative.This is the point of time the people should know that the game is becoming a monopoly act and so the people should start to shift their shopping to brick and mortar stores near to their locality again.

For example,Flipkart offered a big billion day sale a year ago , during that day the offers were too huge that they were providing even 100 % discounts for the products.But, if you watch them now,even though they mention it as a big day sale, the offers have been reduced and the product for which more offers are given are also rarely used products that have less demand from customers.The reason for this is that they have now acquired a huge customer base you could not even imagine.The turnover of Flipkart alone is 2846 crore rupees in 2014.This is their strategy I was speaking before.

So,I hope that the people who are buying from e-commerce websites now on-wards  will think carefully and buy only the selective profitable products and also hope that they will continue supporting brick and mortar stores in their locality.By doing this way, people can make their game of monopoly endless!!!

Thank you.

4 comments:

  1. its an eye opener. every citizen must know this information to not fall in the hands of foreign investors. monopoly should not be promoted. lets try our best. :) good article!

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  2. Blogging makes you a better thinker ,a better writer and helpes you to get some good contacts..Congrats keep blogging... Let your writings inspire others..my suggestion is construct your sentence crispy..

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    1. Thank you kathir,I will try my best in my next blog.

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