Flipkart, Myntra may soon stop offering heavy discounts!

One of the main features of ecommerce that attracted hordes of hesitant Indian consumers to it was the heavy discounts that were available, making it a lucrative option as compared to traditional retail. However, in the light of heavy losses being incurred by these ecommerce powerhouses due to steep discounts, they have finally decided to gradually wane off the price reductions offered.

By the end of 2015, it has been speculated that successful online marketplaces such as Jabong, Flipkart and Myntra have decided to curb the discounts being offered and to freeze it at only 20% eventually. Presently, the same marketplace offer up to 70% discount on the products, often with even more discounts through ‘special discount coupons’ which customers can avail of on their entire shopping order.

Will higher prices affect sales?

Officials are justifying this move with the following explanation, “There was a time when we were creating market using it (coupon discounting) as an incentive to make people come on board. Now we do think it is time to bring it to normal level.”

Aman Jain, co-founder of coupon site GoPaisa.com also ratifies that coupons discounting is down to 25-30% which was once 35-40% few months back. This demonstrates the present climate in Indian ecommerce today, which is trying to curb unsustainable discounts overall.

Will this move affect the popularity of ecommerce in India? This can be answered only by understanding the primary pull that keeps Indian consumers attached to ecommerce. Is it the convenience of accessing a wide variety of products or is it merely the steep discounts offered?

The answer lies yet again in trial and error. The Indian consumer is indeed unique and the best way to know what this move would entail is to actually witness what happens! All we can do is hope that Indian ecommerce customers evolve into those who do not merely gauge a product by its low price only!