While Flipkart's Big Billion day, Amazon's Great Indian Festival, and Snapdeal's Unbox Diwali fight it out with each other to woo the consumers to buy maximum items at lower prices, the government will be keeping a tab on their discounts.
As every year, ahead of the holiday season, this time too, e-commerce websites have come up with massive discounts on their platforms. While Flipkart’s Big Billion day, Amazon’s Great Indian Festival, and Snapdeal’s Unbox Diwali fight it out with each other to woo the consumers to buy maximum items at lower prices, the government will be keeping a tab on their discounts. Agencies formed by the Indian government will keep an eye on the offers and deals by these e-commerce retailers during the holiday season, following the directive to Flipkart, Amazon and Snapdeal to avoid discounts and also to make it clear that the discounts are only offered directly by the sellers, a TOI report said. These online marketplaces have restrategised their approach as revenue matching previous two years of sales is not expected to be met.
While a Flipkart spokesperson told TOI that the sales during its Diwali sale have been decided by brands and sellers, Manish Tiwari, VP (category management) Amazon has stated that this year the sales are not ‘about pricing alone’. “We have increased the number of sellers on our platform by 200% over last Diwali and our operating capacity is 1.5 times of what it was last year,” Tiwari told TOI. These strategy changes are a result of multiple meetings among these online commerce portals and commerce and industry minister Nirmala Sitharaman, where it was made clear that the deals and offers must come only from the sellers and not the platforms, and any violation of the directive will be seen as non-compliance of foreign investment rules.
This has resulted in the e-tailers selecting only low priced products which can burn less money, though eventually, this will result in lower growth in festival sales.