E-commerce companies often give up to 80-90 percent discount on some products.
In such a situation, the question arises many times that even after giving such a discount, companies remain in profit.
Both the platform and the vendors play an important role in providing discounts to the customers.
New Delhi. The annual sale on Flipkart and Amazon has started for all. In the sale, huge discounts are being given on electronic products including smartphones, clothes, home appliances, gadgets. E-commerce companies are giving up to 80-90 percent discount on some products, while on one hand Amazon is giving up to 75 percent discount on electronics and accessories, Flipkart is also not behind. Flipkart is offering up to 80% off on electronics and accessories products.
In such a situation, the question comes in the mind that even after giving such a big discount, how do these companies remain profitable. What maths do these companies apply that despite selling such cheap products, they make profits, so let us tell you today how these companies give such huge discounts and then earn profits.
Platforms and vendors are important
Both the platform and the vendors play an important role in providing discounts to the customers. While the platforms reduce their commissions to increase the volume during the sale, the vendors offer discounts for selling their used items. However, this discount is available in limited numbers.
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sell goods at a loss
Apart from this, many times online platforms also sell many products at a loss. The purpose of selling the product at a loss is only to engage the customer with him, so that the customer buys from them again and again. In this way companies earn profit from them later in the long run.
goods sold in bulk
Online platform companies have a global market. She can sell any product anywhere in the world. Many times the online platform sells the product at a low margin to capture the worldwide market. Even though companies sell goods at low margins, they earn profits due to selling goods in bulk. Selling goods in bulk not only makes profit for the company, but also increases the profit of the vendor.
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Increase sales volume by giving discount
Any company offers huge discounts to increase its sales volume. The purpose of sales volume is simply to reach as many customers as possible, so that they can make huge profits later. Companies like Amazon and Flipkart also give huge discounts to attract customers and later earn profits from them on other projects.
Manufacturing Cost Cutting
Online platform because buy and sell products in bulk. So they are able to give cheap goods to their customers. Actually, when a product is sold in large numbers, its cost decreases, which benefits the companies.
FIRST PUBLISHED : September 23, 2022, 14:11 IST