Feedback
A pioneer B2B media and publication platform connecting with Fashion Brands & Retail in India

E-commerce companies sacrifice margins

Ahead of the festive season e-tailers in India are willing to let go of significant margins across categories to bring prices down and boost sales. An economic slowdown is affecting consumer spends. While e-tailers do offer such incentives during the festive season, the quantum of waiver is perhaps the highest this time. E-tailers are offering waivers in some of the largest categories by gross sales, like fashion and accessories and consumer electronics. Commission typically differs within sub-segments of fashion or consumer electronics. For select apparels, a 15 per cent commission is being offered to be reduced to ten per cent, which is a cut of over 30 per cent. These waivers used to be mainly for devices like mobiles. Now commission waivers of as much as 50 per cent are seen in segments like power banks, chargers and cables.

E-commerce companies are working on the assumption that if they charge sellers a lower commission, the sellers can pass that on to consumers. It usually helps as sellers’ volumes go up. Also the overall volume of advance orders to manufacture some of the private labels of these e-tailers is less than that of last year.

Flipkart and Amazon operate as marketplaces in India and earn commissions that are in the 15 per cent to 30 per cent range, based on product categories and tier of sellers.

LATEST TOP NEWS
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10

18 Fire’s new collection offers traditional garments in a modern avatar

18 Fire’s new collection offers traditional garments in a modern avatar

Rakesh Morvadiya, Director, 18 Fire feels, it’s important for his brand to introduce new innovations in styles while keeping them minimalistic at the same time. “The styles should relate to... Read more

Welspun to unlock market potential with new branding, pricing strategies

Welspun to unlock market potential with new branding, pricing strategies

One of the largest suppliers of home textiles to global giants like Walmart and Target, Welspun is on a mission to change the way Indians use their linen, particularly towels... Read more

Sneakers gain widespread acceptance in India with exposure to fashion trends

Sneakers gain widespread acceptance in India with exposure to fashion trends

India isn’t exactly considered as a big player in the global sneaker market. However, shifting political dynamics, widespread exposure to new trends and growing disposable incomes is making Indian consumers... Read more

Candour London eyes double-digit growth this year

Candour London eyes double-digit growth this year

“Though the Indian lingerie is largely an unorganised industry, but for the past few years, visionary brands like us strive to bring a change by catering to customers’ diverse needs... Read more

Madame adds to the season’s freshness with its new collection

Madame adds to the season’s freshness with its new collection

Sticking to its ethos of being a design-ahead brand, Madame continuously reinvents its multiple product categories with seasonal freshness. “Our upcoming collection boasts of multiple-layers of fabrics blended in a... Read more

Corneliani revamps style with a new collection

Corneliani revamps style with a new collection

Corneliani’s new ‘Style & Freedom’ range for Fall/Winter 2019, presents a sophisticated, quintessential masculine and luxurious style through a contemporary filter to create the perfect balance of beauty, comfort and... Read more

Bonny to strengthen market presence, expects 20% growth this fiscal

Bonny to strengthen market presence, expects 20% growth this fiscal

“There is now a complete transformation in the way ethnic wear is handled with the segment becoming almost indispensable,” says Chetan Dharod, Director, Brand Bonny, a premium player in the... Read more

India’s National E-commerce Policy: A boon in disguise

India’s National E-commerce Policy: A boon in disguise

Expected to reach $200 billion by 2026, Indian e-commerce market is likely to have a total user base of 829 million by 2021. This growth will be primarily driven by... Read more

Competition leads brands/etailers beyond metros to smaller cities

Competition leads brands/etailers beyond metros to smaller cities

With competition in India’s metros and Tier I retail markets intensifying on account of escalating labor and real estate costs, many brands are veering towards the Tier II and III... Read more

Bodycare Creations looks to create a niche with new athleisure range

Bodycare Creations looks to create a niche with new athleisure range

“Changing lifestyle preferences and a promising economy are compelling Indian consumers to be more health conscious and add new health and fitness routines to their already hectic lifestyle, primarily benefiting... Read more

MOST POPULAR NEWS
Go to top