E-commerce companies Amazon and Flipkart are expecting to witness a total business of about $600 million during their ongoing sale events. This is at least 25 per cent higher in terms of sales compared to the business these firms would have generated for such small scale events during pre-Covid times, according to the industry insiders and analysts.
They are also witnessing an increase in volumes (number of orders) which is 40 per cent higher than the normal times. Walmart-owned Flipkart is running the 5-day ‘Big Saving Days’ sale till Monday, coinciding with Amazon’s 48-hour Prime Day sale which ended on Friday night. But Amazon started another event on Saturday called ‘Freedom Sale’ which would end on Tuesday, report agencies.
“These are not dominant sale events compared to Flipkart’s Big Billion Days and Amazon’s Great Indian Festival, but these companies are expected to witness a total sales of about $600 million,” said a person familiar with the sale events of Flipkart and Amazon. “In normal times these events would not have been big, but now there is less competition as shoppers are avoiding to visit the stores due to fear of catching the virus.”
The e-commerce majors have bounced back on better delivery and improved last-mile connectivity during the ongoing sale while discounts have remained largely minimal. Sources say both Amazon and Flipkart are seeing a huge demand for electronic goods.
Amazon India witnessed bumper sales of smartphone handsets during the two-day sale with “many items getting out of stock,” according to a person familiar with the development.
“There has been a good response for brands (on Amazon and Flipkart) especially in categories such as electronics, appliances and smartphones as more number of people are working from home,” said Satish Meena, a senior forecast analyst at Forrester Research. “The sales value would look good as the ticket size of these categories is big. However, this time companies are not focusing much on discounts on these categories as they are not seeing competition from the offline stores.”
Instead of making the sellers bleed, experts say, both the e-commerce majors Amazon and Flipkart have roped in banks to offer discounts to buyers in order to make the deals more attractive.
Ankur Pahwa, partner and national leader, e-commerce and consumer internet at consultancy EY India, said the offers on the platforms and tie-up with banks, especially for discretionary spends categories are indicative of the efforts being made to reboot sales and liquidate stocks in those segments.-Daily Sun