Flipkart has offered to bear 70 per cent of the price differential between the business-as-usual price and the discounted selling price during the upcoming Big Billion Day sale.
Besides, both Flipkart and Amazon are scaling up their operations to generate higher sales and revenues during the festive sale period’s Big Billion Day, and The Great Indian Festival receptively. Both these sales coincide with each other, almost a month ahead of Diwali.
Both companies are working on multiple fronts, including ramping up storage facilities, on-boarding Bollywood celebrities as brand ambassadors and amping up their promotions.
Industry experts believe that since spending is still subdued, industry players are eying the festive buying season. A report by the Retail Association of India suggested that in July 2022, retail businesses across India reported 18 per cent sales growth as compared to pre-pandemic levels (July 2019).
Arvind Singhal, Chairman, Technopak, said all players are fighting for a share of the customer spend., “This year people are expecting a lot of revenge shopping, after a two-year lull because of Covid. So, all the players are trying to make it as lucrative for the sellers as well as the customers.”
Flipkart has said its Big Billion Day sale this year will have over 130 Special Edition collectibles designed in collaboration with 90+ brands across fashion, electronics, mobile phones, large appliances, personal care and handicrafts. Further, over two lakh kirana delivery partners and MSMEs from across the country will also be brought together for an inclusive festive season.
According to an email sent to a seller by Flipkart and accessed by BusinessLine, Flipkart has offered to bear 70 per cent of the price delta between the business as usual (BAU) price and the discounted selling price for the upcoming Big Billion Day sale. for its sellers.
T has charted out multiple ways in which sellers can amp up their profits during the sale period. These include “Offer BBD prices during the intrigue period, maximise visibility through special homepage slots, special filters as ‘sale is live, popular brands, and top-rated, high discount friendly deal constructs, and a super seller reward programme.”
Flipkart did not respond to BusinessLine’s query, however, Singhal said: “It is usual for eCommerce platforms and sellers to share the cost of promotions, especially during big sale periods or whenever there is a slowdown in consumption. The companies do incentivise their sellers by offering to give up a small percentage of their margin, in return for a small margin sacrificed by the seller as well, to make it a win-win. Though percentages vary between 50-50 or 70-30 depending on the type of product and the time of the year.”