The annual mega sale is at peak as the 2013 year ends in India. Major retailers offers great discounts on Christmas and New Year along with popular festivals including Holi and Diwali. To encourage online shopping at single platform with huge discounts, sales, offers and payment schemes the internet search engine giant Google Inc. organizes Great Online Shopping Festival (GOSF) second time this year ended on 14th December 2013. Last year in GOSF around 90 websites participate while this year around 240 sites took part. And on an average most of the sites offer discounts on clothes, shoes and apparel around 30 to 35%, while prices for mobile phones, tablets and other electronics were discounted by 10% approximately. Also, ordering food online seems cheaper by 20 to 30% around.
Most of the online retailers offer such prices to increase there customers count via new registration of first time online customers and to keep the old subscribers loyal with coupons, discounts, cashbacks and loyalty reward programs. Such big sale, discounts and cheaper deals attracts most of the consumers as the online offering is not limited to specific location or Store or customers cos most of the online retailers give Free Doorstep Delivery in major cities and location along with Cash on Delivery (COD) option available to the customers at a particular order amount, free exchange return provision. This way online retailers will keep offering discounts till people get used to online shopping. It also helps to reduce inventory on old stocks of collections and variety.
The offered price need to be very lucarative and competitive as there are multiple retailers popping every month in India and there is no entry barrier or store based, limitation to location based transaction. But to create a sustainable model the overall buying experience at a fair price with timely delivery is substantially important in long run. Also, most of the online retailers maintains there offering portfolio with customer traffic patterns on weekly and monthly basis and they are willing to work on smaller margins.
The most admiring reason for customers to start shopping online is cheaper prices and marginal discounts. Every big retailers will have to leverage discounts in the online retailing industry to sustain in this cut-throat competitive scenario. And the trend will continue at least for upcoming 2 – 3 years.