By Amit - September 23, 2022
New Delhi9 minutes ago
The thing is from the year 2014. India’s e-commerce industry was growing rapidly. People were shifting from offline to online shopping. Then Sachin Bansal and Binny Bansal, the founders of Flipkart, a seven-year-old startup, made a big bet. The goal was to completely transform the shopping experience of the people of India. On 6 October 2014, something was about to happen which was completely new to the people of India.
The apartment number was 610, so chose the date 6/10
Sachin and Bini chose the date 6/10/2014 because the apartment from where they started Flipkart also had number 610. This event was named ‘Big Billion Days’. Preparations were going on for this day since 2-3 months ago. The tech team was the key to making the event a success, as the company expected the traffic to grow up to 25x on the day.
In 2007, Sachin Bansal and Binny Bansal shifted to a residential space in Koramangala after the business of Flipkart grew. This was his first office.
$100 million target
More than 5000 servers were deployed so that the website does not crash due to high traffic and the user gets the best experience. Big advertisements were given in newspapers and on TV. The company had set a target of $100 million GMV in 24 hours for this day. GMV stands for Gross Merchandise Value. Gross Merchandise Value is the total value of goods sold through an e-commerce platform in a given period.
24 hour target accomplished in 10 hours
The Big Billion Days sale went live on 6 October 2014 at 8 am. The sale offers up to 80-90% discount on a wide range of products. Many products were put on sale for only one rupee. The people of India had never experienced anything like this before and Flipkart got such a great response from the people that it completed its target of 24 hours in less than half the time i.e. 10 hours.
Sachin and Binny had said – Big Billion Day is an unprecedented day for us as it is the biggest sale ever in India.
More than 15 lakh people made purchases
More than 15 lakh people had made purchases on this day. This has never happened before in the history of India’s e-commerce industry. In the media, it was compared to America’s Black Friday sale. Since then every year Flipkart organizes Big Billion Days. Amazon has also started the Great Indian Festival in competition with Flipkart’s Big Billion Days. Every year it is also organized before Diwali.
After reading this story, the question in the mind of many people will be that how do these e-commerce companies offer such huge discounts? What is its math? How much money does the company make from this sale? What has been the trade volume and revenue of the companies in the sales of the previous years? Is this sale really beneficial for the customers? Before knowing the answers to all these questions, let us know about the block buster deals of this time sale.
Amazon-Flipkart sale starts from today
The sale of e-commerce company Flipkart and Amazon has started for everyone from tonight. The sale is offering huge discounts on a wide range of products from smartphones to clothing, home appliances, gadgets. As usual, the sale for Prime members has started a day before i.e. on 22nd. The sale prices have gone live on the app and website of Flipkart and Amazon.
Up to 85% off on Flipkart
Flipkart is offering up to 80% off on electronics and accessories in its sale. There is also a discount of up to 80% on TVs and Appliances. Apart from this, 60%-80% discount is offered on fashion, beauty, toy, sport and more. Up to 85% discount is offered on Food & Beverage and Kitchen-Dining. Up to 85% discount is also being given on furniture and mattresses.
Amazon is offering up to 75% discount on electronics
Amazon has launched more than 2000 products this time in the Great Indian Festival. Amazon is offering up to 75% off on electronics and accessories during this shopping festival. Up to 40% off on Smartphones and up to 70% off on TVs & Appliances. Up to 80% off on fashion, home, kitchen and more. Up to 85% off on Furniture & Mattresses.
Tips for the Best Deal
Big discount math
Before understanding the math of discount, it has to be understood that how do Flipkart and Amazon work? In fact, these companies are like intermediaries that connect vendors and customers through their platform. These companies provide a platform for vendors to sell goods through their website and in return take a commission on the sale. Now let’s understand the math of discount in 4 points…
1. Discount to increase sales volume
The purpose of sale of any company is to increase the sales volume. Increasing sales volume means increasing customer base. Remember 2016, when Jio was providing free 4G internet across India. Everyone was in line of SIM for free internet. This was Jio’s strategy to get more and more customers. Similarly, companies like Amazon and Flipkart also give huge discounts to attract customers.
2. How is 80-90% discount possible?
In this, both the platform and the vendor have a role. Platforms reduce their commissions to increase volume during the sale. At the same time, let us understand the role of the vendor with the example of clothes. Big apparel brands try to clear the old stock by giving discounts every year, but companies are able to give discounts only up to a limit to maintain their brand identity.
In these situations a liquidator buys a large stock from the company at 20-30% of the retail price. He then puts it up for sale online at a small margin. There is no doubt that online platforms sell many products at a loss, but they know that once customers get used to buying products from them, they will be able to make profits in the long run.
3. Reducing Manufacturing Cost
Everyone must have read the profit formula in school. Profit = Selling Price – Cost Price. Cost price means how much the product was made ready for and Selling price means how much the product was sold for. If any product is sold in more quantity then its cost price goes down.
4. Earnings from Bulk Sales
Margins may be lower in bulk sales, but increase in volume increases earnings. Things like mobiles, TVs, laptops, ACs are available at such huge discounts only because of the bulk of them being sold. Selling in bulk increases the profit of the company as well as the vendor. Due to all these reasons given above, customers get 80-90% discount in the sale.
Is this sale beneficial for the customers?
Everyone needs various products and services in day-to-day life, so if we are getting our essentials at a discounted price, then why not say it? Now let’s look at the other side of it. If you are buying anything because it is available at 90% discount, then there is no point in buying it. In a way it is a waste of money. Therefore, how beneficial the cell is, it depends on itself.