Beginning October 1, the next few days could be a feast for buyers, especially the shopaholics. Leading e-commerce players such as Amazon, Snapdead and Flipkart, are coming out with their festive season shopping bonanza/discounts next week. The ‘shopping bonanza’ will offer huge discounts on a wide range of products that can go up to 70 per cent on select items.
While Amazon’s ‘Great Indian Festival’ will be in place from October 1-5, Flipkart’s Big Billion days and Sanpdeals Unbox Diwali Sale are slated to entice buyers between October 2-6. While these are the few big players out with their offers, there will be many discount offers from other players during the forthcoming festive season.
If you are looking to purchase that white good or other household products, this could be the best time to sew the deal. It could be comparatively light on your pocket. However, before you take the plunge, just assess a few things so that you do not overspend in comparison to your ability and create a problem for yourself for the future.
These offers tend to lure you into making purchases that you might not actually need. This is especially true if you are going to use your credit card for making the payments, either by making down-payment or through converting the purchase into equated monthly instalment to be paid over the next few months.
“Sale is very tempting, sometimes we end up buying things which are not required. Make cart in advance so that products don’t get exhausted by the time we order them and set up advance account with delivery address and other required details,” Kulpreet Kaur, Co-founder, Shop Pirate Couponx told FeMoney.
Kaur says that the heavy traffic during the festive sales make it difficult for merchants to handle. “During festive sale many brands and products, especially in electronics and home appliances goes for discount. There are exclusive launches that take place in this time period to entice the consumers as in India most people buy new products during Diwali, thus there is heavy traffic on the online sites. At times the merchant site is not able to cater to this heavy traffic thus making this buying process is not smooth and therefore shoppers’ face many challenges,” she said.
In fact, the EMI option that credit card issuers offer through the e-commerce sites, is a tempting proposition. This is one of the most preferred ways of payment for many of those going in for online purchases. However, whether to availe of the EMI or not need to be anaysed carefully.
“With EMI, one should look at flexibility in terms of loan payment as well as repayment, what are the criteria to be eligible for the loan and what kind of interest rates or APR one actually gets, post that also should one want to pay his/her whole loan early or if there is some kind of termination fee involved,” said Rishab Malik, Co-founder and VP, Business Development- Droom.
Tejasvi Mohanram, CEO & Co-Founder, Rupee Power, advises consumers not to get carried awat by the EMI offers. “EMIs are helpful as they allow consumers to get products instantly while paying for it over the next few months. However, it’s easy to get carried away buying products which you may not require. Remember that EMI is a debt. Ask yourself if the purchase is a ‘desire’ or ‘need’. Go for an EMI only if a purchase is a necessity.”
- Mohanram lists out five points that a customer should consider while opting for EMI option
- Make a budget. It’s a simple activity and give you much greater control of your finances
- Ensure that the EMI amount can by comfortably covered without putting a strain on your budget
- Avoid over leveraging yourself as it affects your credit score. Anywhere north of 25% utilisation of your credit limit is bad for your credit profile
- If you opt for a EMI on credit card, your credit limit to the extent of the original amount becomes unavailable to use. Make sure your day to day activities are not hampered due to the reduced limit
- If you own multiple credit card, look for the one offering the lowest overall cost (processing fee, interest rate)