Ecommerce companies step up discounts in bid to get rid of stock

Ecommerce marketplaces are offering discounts as high as those at peak Diwali season across categories ranging from grocery to smartphones and electronics, ahead of the government’s revised foreign direct investment (FDI) policy taking effect on February 1. Some discounts are 3-5% higher than those at Diwali and could be aimed at clearing stock ahead of the move, experts said. 

Online grocery delivery service Grofers chief executive Albinder Dhindsa said its January 19-27 Orange Bag Days promotion saw a record `60 crore of sales on day 1 and is targeting `200 crore for the week. He said the sale had been planned “before the new policy changes were announced last month.” 

Senior executives of onlinefocused smartphone and electronics brands said there is a rush to clear inventory through higher discounts since the marketplaces have not been able to provide much guidance in case the government does not agree to extend the February 1deadline. 

“Discounts were never so attractive during Republic Day sales. There is a possibility that brands which have no offline presence could be in a rush to clear inventory,” Amazonexclusive electronics brand BPL India’s chief operating officer Manmohan Ganesh said. 

“Republic Day and Independence Day sales are two of the biggest events for grocery buying in the year,” Dhindsa said. “Not only is the Grand Orange Bag Days sale the largest online grocery sale by far, larger than all other online players combined, but is also one of the largest sales in the segment.” 

Amazon, which is running the Great Indian Sale on January 20-23 and has over 400,000 sellers on its marketplace, said “product selections and prices” are decided by the vendors. “For the past several years, we have worked with our sellers to plan events where they offer great products and deals to customers,” an Amazon India spokesperson said. “The sale in January is one such event.”