Is the game of discounts spoiling the E-Commerce industry ?
Flipkart,Snapdeal,Amazon,Voonik, & Lakhs more such websites you may have come across while online shopping. We as a customers are too happy & feel privileged to get this offers & discounts but it has turned out to be an big hurdle in e-commerce industry.
When this biggies in e-commerce industry went on for this model they themselves did not realize that they were digging hole into their own pocket. This is the main reason e-commerce company have failed to turn profitable even after 10 years in the market.To get more & more revenues they are forced to offer bigger discounts to retain customers & stay in line with competitors. The Customers here are on winning side as they are the ones who are going to pay & they are bound to go with who has more to offer.
So what it has done is offering huge discounts & cash backs has become an important & currently unbreakable part of e-commerce industry. The discount thing is currently something which cannot be ignored irrespective of what product you are selling explains Mr.Harsh ,Director of RUDRI,he further quotes " We at first decided to proceed with no discounts pricing but we were strongly advised to take this adverse step which we needed to follow. So we started offering minimal discounts which showed up good response which made us change our technique in name of discounts. Due to this big players such as Flipkart the e-commerce industry & retail industry has suffered a lot because people are more inclined towards GOOD PRICING rather Than GOOD QUALITY product.The Customer is always going to demand for more & more you need to tell them what make you different & when you acquire customer on this basis you have win win situation"
This has not only affected the E-commerce industry But also YOU (Customer/Consumer) which somewhere loose on a GOOD Quality Product when you looking for GOOD Priced Product & as we all know QUALITY COMES AT A PRICE.
So next time you do an online shopping keep this in mind DO YOU NEED A GOOD PRICE OR A GOOD QUALITY ???