The fight for power is just few days away as the ecommerce trinity Flipkart, Amazon and Snapdeal have announced their October festive sales. Amazon will run its ‘Great Indian Festival’ sale from October 1 – 5. Snapdeal’s Diwali Dhamaka and Flipkart’s Big Billion will run from October 2 – 6.
Here’s what to expect and what not to expect.
No steep discounts?
No surprises here. Etailers are banned from influencing sale prices of products directly or indirectly and there’s a 25% cap on sales from single seller. Therefore, despite of the willingness to fund discounts, they can’t dole out deals like the previous years.
Instead, marketplaces’ focus will be on quality of service & products, improving consumer shopping experience and creative marketing campaigns. Flipkart has set aside Rs 30 crore for BBD marketing and advertising campaigns. On the other hand, Amazon India’s marketing budget is Rs 125-130 crore. And Snapdeal has already spent Rs. 200 crore on its rebranding project which coincides with festive campaigns.
But according to industry experts, in spite of the heavy ad expenses, this festive season’s combined sales figure won’t exceed Rs 10,000 crore.
Biggest spenders (sellers) to be rewarded by etailers
Since ecommerce biggies can’t splurge on discounts, they have urged sellers to spend on discounts, ads and promotions. And in return, the etailers will reward sellers by giving out incentives.
Amazon is working on an incentive program for top 200 spenders, whereas Flipkart has reserved Rs. 50 lakh to reward 2,000+ sellers.
One seller revealed,
“Amazon is focussing majorly on driving traffic and wants sellers to be more proactive through sponsored ads and promotions to drive sales.”
But with this push to give discounts, sellers are also being warned about not inflating the prices.
“Flipkart is keeping a close watch on sellers to ensure they don’t inflate price tags now and lower it during the festive sales so that consumers get genuine discounts. It may also have a few more festive discount sales in October to keep pace with Amazon,” according to a seller.
Biggies counting on smartphones and big appliances
Increasing sales of big ticket items is on every ecommerce firm’s agenda this Diwali. Amazon and Flipkart have tripled-quintupled its smartphones and consumer electronics stocks.
The Bansals-led company is also focusing on exchange and EMI programs, while Amazon is looking to rely on faster deliveries, sponsored ads. The etailers also plan to boost festive sales of online only products & brands and private labels via its own sellers like WS Retail, Cloudtail and few others.
Snapdeal too is going to offer EMI facility and exchange offers.
The Kunal Bahl-led company said,
“In line with its positioning to offer upgraded options to its users, the sale will also provide pocket friendly exchange offers and convenient EMI options on electronics and mobile phones. Another special feature of the sale will be special Snapdeal Diwali packs curated by leading consumer brands.”
Sellers, are you willing take the burden of discounts on your shoulders? Are the incentives offered by marketplaces alluring enough? What are the special instructions given by etailers ahead of the festive season? Do share in the comments below.
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