This festive season, according to ecommerce majors, is going to be the best ever. Amazon, ShopClues, Flipkart, Snapdeal Diwali sales are already live and generating humongous numbers. And the most important number of them all is the one on revenues and profits. And that seems to be looking up as this holiday season is expected to be bigger than last year as the shopping opportunity is truly pan-India with smaller towns across India too falling into the ecommerce net.
How this has been made possible is the super-quick improvement in infrastructure in terms of logistics, broadband and Internet-ready devices that has increased the reach of all ecommerce companies, making for a single pan-India opportunity. While the response in metros is spectacular, the tier 2 and 3 cities too are generating amazing numbers due to the fact that these companies have ramped up their presence in these locales in terms of delivery and payments and above all internet penetration.
Proof of that lies in the statistics and here are some: The search interest for ‘Online Shopping’ shows that in Tripura, Sikkim, Mizoram, Meghalaya, and even in tiny Andaman and Nicobar Islands is skyrocketing.
Looking at Google Trends, search for online shopping sale has soared by as much as 250%. For one particular online marketer ShopClues after the launch of its ‘Lowest Price Online Challenge’ has risen by as much as 80% in this region. However, Snapdeal tops at +300%.
The reasons are not far to seek. Amazon Great Indian Festival Sale, Flipkart Big Billion Days sale, Snapdeal Unbox Diwali Sale and ShopClues ‘Lowest Price Online Challenge’ are offering daily use items as well as those that people buy every 2-3 years, at prices that are virtually rock bottom and that too delivered right at the doorstep. So, invitingly, from mobile phones to other home and lifestyle products are now on sale. The demand is there and the eretailers are rushing to fill any gaps in their supply chains as fast as possible. And, as far as buyers are concerned, this is the festive season and there is no need to find any excuse to shop-till-you-drop!
Plus, banks like ICICI Bank, Standard Chartered, American Express, HDFC Bank and others have jumped on the ecommerce bandwagon by offering additional discounts and interesting payment options like interest-free zero-cost EMIs, making for perfect condition being created – the timing is right and the products are in place.
With so much of the population covered, all the ecommerce companies, which have been facing profitability ‘issues’ aplenty, may get their business humming and laugh all the way to the banks.