THE ECONOMIC TIMES: Shopping deals, Why online sales work for Flipkart, Amazon despite massive cash burn
THE ECONOMIC TIMES: Exactly a month after the first mega online sale of the year, e-commerce companies seem to be clearing the decks for more, given that it may actually be paying off. According to a report by research firm RedSeer Consulting, last year’s sale days – which roughly totalled 30 – contributed a massive 30% to the annual GMV.
Indicating that the Indian e-tailing industry may be massively sale-driven, the report stated that there has been an increase of about 30% in the average order value and 200% in the number of daily transactions during the sales period in 2017.
Although it is commonly accepted that sale days – which add up to just 10% of the year – work because it inducts new customers on to the platform and help shape the habit of online shopping, the RedSeer study brings to light two critical insights – the role that geography and smartphone purchases might be playing in this.
Dialling it up
Smartphones – a high-value category – has reportedly been the biggest segment in terms of GMV in 2017 with nearly 50% increase from the previous year, followed by electronics and fashion. This could be attributed to flash sales, lucrative exchange offers and most importantly, exclusive e-commerce partnerships.
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