Flipkart’s Big Billion Day sale is said to be a one-in-a-year chance to buy everything on your wishlist at a good discount.
But how does Flipkart do this, how they provide things at such low prices, how they manage to profit these days, and whether the sale is worth your money? Let’s find out the reality.
The sale aims at providing the best prices to the customers by giving discounts, providing cashback, and many other offers.
Many people have queries like how a mobile phone worth rupees 20,000 is offered at the price of 16,000 during the sale. Now, there would be a simple answer to this that either the company is making Rs 3,000 more before the sale, or they are providing the discount by bearing the loss of Rs 3,000 themselves.
So, in this article, I will try to describe how Flipkart manages to get the profit even after providing such high discounts and are the deals worthy.
- Price Hikes before the sale.
We have often seen that the prices of the products get high before the sale starts. This is mainly seen in the case of electronic devices, especially mobile phones like ‘Samsung Galaxy F62′, whose price suddenly got raised to 23,999 rupees before the sale.
- MRP Discounts.
Maximum retail price (MRP) is the highest price at which a product could be sold, but it’s not the regular price; an average price of a product is mainly below the MRP. But before the sale, the company starts selling them on MRP so that they can give discounts during the sale. Let’s take a look at the ‘Infinix Hot 10s (4GB, 64GB)’ variant, whose MRP is 12,999, and during the sale, it is 9,499.
It has also been noticed that the price of the products offering under 50% discount during Big Billion Days is higher than other websites like Amazon.
- Creating Hype.
All advertisements on different platforms like televisions and newspapers create hype among the people, which leads everyone to talk about the sale and its benefits without checking whether the offers are genuine or not. And due to this hype, many people start believing that the offers are excellent and end up purchasing the product even if they need to push their budget. Nowadays, the company hits the social media influencers with millions of followers for their promotion, and the audience gradually starts believing the advertisements.
- Bank Offers.
In most of these offers, the customers have to shop with the minimum transaction value of Rs 5,000 to avail the 10% discount. Now, someone who is going to shop for Rs 2,000 now shops for Rs 3,000 more to grab the discount offer, which is, in reality, sponsored by the bank itself, so the company makes a profit from the discounts.
- The credit or debit card offers.
Previously Flipkart gave offers on credit card purchases. And now the offers are applicable for both credit and debit cards, but the discounts on debit cards are comparatively low than that of credits card. In India, a small percentage of the population uses credit cards which means that most people are not applicable for credit card discounts. Thus, many people buy using their debit cards at lower discount rates.
- Combo Offers.
Many products come with a combo offer that gets into the spotlight during the Big Billion Days sale, in which you get multiple products in a single order. These can be the same products with different designs or different products related to each other.
It helps the company in saving many expenses like delivery costs. It also helps the company in getting the orders which worth more. Let’s take an example, suppose a person wants to buy a pair of gym gloves, he searched for it on Flipkart and find one that cost Rs 250 now he scrolls down and founds a combo that has two pairs of gym gloves which costs Rs 450, so he places an order for the combo to save his 50 Rs. And by this, the company gets an order that is worth Rs 200 more.
It is not like Flipkart’s big billion days sale is entirely worthless. In fact, many people do get a good deal, but most of the time, the sale only pushes people to buy something unnecessarily at a high price.