Amazon Great Indian Sale or Big Losses Sale?

I am pretty sure that each and every shopaholic must be aware of the Amazon Great Indian Sale. It started on 20^th of January, and will continue till 22^nd of January. Amazon expects this 3 days sale to be of great success. It is offering flat 40 percent discount on diamond jewelries. You will also get up to 50 percent discount on various kitchen appliances. Smart phones will be available at various exciting deals. Almost 100 million products are kept in sales at very attractive prices. So, if you wish to buy any of the above mentioned products, you must check out this Great Indian sale. The available offers are so much tempting that it will compel you to buy large number of products.

• Amazon’s First Sale Of The Year

This sale is by far, the first sale brought by Amazon, in the year 2017. It is filled with a variety of surprises for us. If you are among the top 10 lucky customers, then you stand a chance to win a trip for two at Europe, with all-expense paid. Tempting, right?

Don’t let your hands work faster than your heartbeats, before reading about this second news. 10 other lucky customers will also stand a chance to win the most popular car, i.e. Renault Kwid. There are uncountable offers that are combined with fast delivery options.

• Are you one of the Prime Members Of Amazon?

If your answer is a “yes”, then Amazon has come up with some exciting additional offers for you. For all of its Prime Members, Amazon is offering you Prime exclusive deals. In addition to this, all the Prime Members will also have a 30 minute early access to all the top deals before the regular or non-regular customers. They will also avail the regular offers, as is provided to any Prime Members, i.e., every Prime Members will continue to have the free fast delivery of a day, or two day shipping, throughout the large selection of items. They will also continue to have unlimited free video streaming.

• Let’s Talk About The Losses

Amazon came second in terms of the amount of loss incurred, with Flipkart occupying the first position. Where Flipkart experienced a loss of Rs. 5223 crores, Amazon, at the same time, incurred a loss of about Rs. 3571 crores. All these losses are said to be the heavy amount of money spent by these e-commerce companies on the advertising part. Demonetization could also be one of the major reasons for the huge loss reported last year.

Also, from my point of view, this sale is going to be one more loss sale to the Amazon. Because of this sale, Amazon has to aggregate sellers. Once this is done, Amazon gives huge discounts and that too, from his own pocket. This is done just to attract the customers. Another reason for the Amazon to spend from his pocket is to clear the dead stocks. The ultimate result is that all these factors do nothing except aggregating to more losses. This can also be interpreted as transferring money from big pocket investors to the customers in anticipation of future profits from the customers. Therefore this sale should be considered as Big Losses sale, rather than the Great Indian Sale for the Amazon.

• Will This Great Indian Sale Be The Same As The Great Indian Festive Sale Of Last Year:

This sale is definitely one of those sales, which everyone must be waiting for. Last year also, Amazon came up with the Great Indian Festive Sale, during the month of December. This sale took place around the time of Diwali, where Amazon sold a total of 15 million units.  After this much sales also, Amazon had undergone great amount of loss, as mentioned earlier. Although the e-retailers do not earn much in these sales but at least the delivery chain earns reasonable amount of profits with huge delivery business flowing in through these events.

This year also, the sales have dipped as one of the outcomes of demonetization. At this time, especially in India, the late stage funding has also dried up. Therefore, it is going to be very difficult to keep up with the marketing spends of last year. We also expect a cut in marketing budgets, especially during the first half of this year. Let us see, if this sale is going to be the Great Indian Sale, or once again, one of the Losses Sale.