The ecommerce company is going to start its 3-day Diwali sale from 3rd November. With discounts of up to 80% and double cash-backs on all products, the marketplace aims to match the deals offered by its competitors Amazon, Snapdeal and Flipkart during the sale season.
The revenue target set by the company is high too. While talking about the company’s target, Saurabh Vashishtha, VP - Business at Paytm revealed to ET, “We're expecting sales of Rs 1,000 crore from the entire festive season. A significant portion, around 25-30%, of sales from the festive season should come from the three days.”
We saw how Flipkart, Amazon and Snapdeal focused on the mobile phone category during the recently concluded festive sale. It also turned out to be profitable for them as Flipkart sold 5,00,000 handsets in ten hours, Snapdeal sold 500 crore worth of mobiles in a single day and Amazon also sold impressive number of handsets in an hour as compared to non-sale days.
Mobile phones and apparel are expected to be the hottest selling categories for Paytm too. But as per this Forbes article, Paytm’s revenue also arises from product categories such as auto accessories, fashion, gardening supplies, and home and kitchen.
“We're expecting the gifts and sweets category to see more transactions, as we saw the trend pick up during Eid,” Vashishtha added.
Emphasizing that mindless discounts is not a healthy game-plan, Vijay Shekhar Sharma, Founder of One97 Communications that runs Paytm said, “People are turning Diwali into a reckless celebration of throwing away $100 to earn $70; they are chasing vanity sales numbers to maximize the next fund raise.” Instead of deep discounts, the company is going to focus on cash-backs.
Snapdeal-Freecharge collaboration was a strong indicator that in today’s ecommerce world, marketplaces with its own digital payments service is a huge advantage. The advantage that Paytm has right from the beginning and is exactly what’s going to give Paytm an edge over others during Diwali sales.
The marketplace is going to match the discount offered by sellers listed on its platform with lucrative cash-back deals. What helps even more that these cash-back points roll back in Paytm’s digital wallet, which will lead to more transactions.
Smart strategy by Paytm! Let’s wait for its Diwali sale to start to see how its strategies pan out eventually.
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