Online marketplaces getting ideas from offline retail
Online marketplaces getting ideas from offline retail. Online marketplaces are trying out new ideas around commission and credits for sellers to entice consumers online.
E-commerce marketplaces in India are trying out innovative ways to work around curbs on offering discounts as they prepare for the biggest shopping opportunity of the year in the upcoming festive season reports Times of India. Amazon has decided to cut the commission it gets from some large and preferred sellers by 30-50% on the condition that the saving is passed on to consumers, according to executives from four large online sellers. Non-preferred sellers may have to bear the discount entirely, although the online marketplaces will help liquidate their old stock through promotions and prominent displays.
Flipkart and Snapdeal are coming up with a similar strategy, sellers on the two platforms said. They plan to offer credit to sellers, equivalent to the discount offered, a practice that's common in offline trade. A Flipkart spokesperson said the marketplace is focused on ensuring maximum value to consumers by making quality products affordable and accessible. "While we continue to expand the affordability charter through innovative programmes such as no-cost EMI and product-exchange programmes, discounts to consumers are given by sellers and by various brands," the spokesperson said.