Offer valid for limited period only: Crazy online discounts to end soon

Just last week we carried an article on how Myntra plans to focus on breaking even soon. Seems like this bug has caught other big players in the market as well. According to reports, e-commerce companies have already started reducing the number of unbelievable discount deals offered on a weekly and sometimes even daily basis.

Cut your coat according to your cloth

According to Praveen Sinha, co-founder of fashion portal Jabong, “Overall, I would say discounts have to stabilise, but I would say that there will be always some discounts there for e-commerce companies as we have the advantage of scale and we don’t have the real-estate and overhead costs associated with that of offline retailers.”

This clearly indicates that Jabong plans to cut down on heavy discounts offered to Indian customers. Myntra has already spearheaded the ‘profit first’ movement within the e-commerce industry and already seem to have a bright possibility of breaking even soon.

The light of profit at the end of the customer acquisition tunnel

Flipkart clearly seems to focus on investing heavily for customer acquisition at the moment, which is explained by the overall losses they have been incurring despite having thunderous sales. If reports are to be believed, Flipkart garnered a total loss of INR 400 crores this year. Flipkart has tried to work around this challenge by introducing more cost-effective ways to acquire a stronger customer base- acquiring Myntra.com was one of them. In any case, profitability seems like a further dream for one of India’s biggest e-commerce players as Flipkart doesn’t want to focus solely to ‘profitability’ at the moment.

Eventually it does seem like the discount frenzy will taper down to fewer offers online, which can also be more reasonable for online retailers.

After all, all offers are valid for a limited period only!