Here is why online stores offer great discounts and great offers


Online shopping is a sure way to get the things that you always wanted to splurge on. Additionally, you will never have guilt pangs of over spending on you r favorite things because online stores and shops have great discount 7coupons and codes. Till now the trend has been to declare shopping festivals coinciding with popular Indian festivals but slowly and surely, offering great prices and genuine discount coupons on online sites is becoming a reality.

Why do online shopping sites declare festive offers and big savings?

Doing this ensures two things. It is a win-win situation for both the parties. While customers flock to buy things from such sites which offers them big savings and festive offers, the shopping store is also looking for major boost in the number of footfalls in the tour. Offering generous discounts ensures that the word gets around faster that a shopping store is giving out great discounts and freebies and soon the customers flock there out of curiosity.

But mind you, it is not just a publicity gimmick!

If you ever thought that offering things that are priced lower than what it is sold for in conventional stores is a part of some gimmickry by the online store, think again!
The online store is not playing any games with the customers nor is it trying to give away the product at a price that is lower than its procurement rate. Then how is it possible that they are able to offer such great offers and discounts and also not able to make any losses?

For this my friend, we need to understand a bit of basic on economics:

When a store orders from the manufacturer in bulk, the manufacturer provides the dealer or the exclusive marketer the best discount possible and also provides for a marked up price which means that the selling price of the product must never exceed that. that is mostly printed on the pack.

The difference between the discounted price and the marked price constitutes the net profit of the online store. On normal days the store may be selling the product at the asked price and yet on other day, say for example on the eve of deepawali, they will announce great slashing of prices. It is always to be remembered that very rarely does the online store go below its discounted rate and gives away the product at a loss.

So, even on a day when you think that the portal is even ready to give you at 75 percent, think again. Chances are that the online store is still able to manage to make a decent margin even on festival shopping days. But why would online store want to make marginal profits?

The heat of competition:

Yes even the online stores feel the heat of competition. Not only do they have to face competition from real brick and mortar stores but also from competing online stores. During shopping festivals, a lot of online shopping portals come out with super offers to lure the consumers to buy from their website. they also spend money on advertisements and look of ways to disseminate information through the social media as well.

Flushing out of stocks before season ends:

Fashion industry is fickle in nature. The styles and cuts that come in suddenly can also vanish out as quickly as they came. In this kind of environment, it makes no sense to catch hold of big booty of stock waiting to get a good price while the fashion industry changes its mood and you are left with no sales but loads of stock and other liabilities.

No overheads:

Another good reason why online stores give out great offers and discounts is that when you compare their overheads to a conventional brick and mortar shop, their overheads are as less as possible. A major chunk of investment in conventional business houses goes towards rent of the retail space. Online stores absolutely save all that money and so they can easily afford to sell their goods cheaper. Additionally they do not have drones of staff and attendants to attend customers. Some of the websites are so progressive that their site map is enough to be able to successfully navigate through it and add the desired products to the virtual cart and affect a check out.