The government had banned online marketplaces that receive
foreign direct investment (FDI) from influencing product prices in March. This
is why Flipkart, Myntra, Snapdeal and Amazon had temporarily suspended sales
events in April to comply with the new regulations and to avoid potential
punishment from regulators. But, these firms have again started sale events
since the past few days. They are offering 20 to 90% discounts on a wide range
of products including apparel, footwear and fashion accessories in their
end-of-season sales. They also promoted their sales extensively with front page
ads in national newspapers. So, you can now start shopping for the amazing
Flipkart, Amazon and Snapdeal offers
again!
The government had allowed 100% FDI in online retail in
order to legitimize the existing businesses of eCommerce firms in India.
However, it also stated that matketplaces cannot influence product prices and
services on their platforms directly or indirectly. It also stated that sellers
cannot contribute more than 25% of the sales of any marketplace. The government
had taken this step so that the online retailers could find new ways of giving
discounts. This step was taken after the offline retailers filed a case against
online retailers stating that they were violating FDI rules by selling directly
to customers. So now, it will be interesting to watch how these offline
retailers will react to these big sale events brought up by eCommerce firms.
Before these sales, the eCommerce firms has reported that
they were seeing weak sales numbers because of lower discounts and a pullback
in advertising after the FDI rules. For the first time, online retail sales in
April were lower than that in December last year. However, after these sales,
eCommerce sales are happy again! Online fashion retailer (and a subset of
Flipkart) Myntra has seen an increase of 23 times its daily sales during its
‘End Of Reason Sale’ held for two days. It saw more than 37 million visits in
two days, out of which 30% shoppers were first-time buyers on the site! So what
if the sale is over? You can still shop for your favourite fashion products
with the latest Myntra and Flipkart Coupon codes available at Discount Mantra - India’s best online offers and coupons
store. You can also subscribe to the newsletters to get the latest
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