Ever wondered how an e-commerce platform like Snapdeal can sell products at such low rates? Does it make you ponder over the company’s credibility or whether it is safe to shop or does it make you question the product quality? Well, it is fair question that arises in one’s mind as a customer.
Scope of E-Commerce Platforms In India
India has become a major hub for e-commerce platforms like Snapdeal, Meesho, Flipkart, Myntra etc. With a rising population, the demand for consumer products and services is also on the rise. Approximately, 289 million people have switched to online shopping for goods and services. Government schemes like Skill India, Digital India and Start-up India are significantly contributing to the growth of India’s e-commerce sector. India will become the second largest online consumer market by 2030 with the increasing numbers of online shopping platforms. However, in this time, the question about quality, safety and affordability of products is a major concern. This is where platforms like Snapdeal come into play. The basic approach is to provide customers with value-products where quality and price both are central to their shopping experience. At Snapdeal, customers can find quality products within their budget. Right from ethnic apparel and healthcare products to fashion accessories and personal grooming, you can find everything at one place, with the average selling price ranging between Rs.300- Rs.500.
How Does Snapdeal Manage To Sell At Such Low Prices?
Good quality and low price often don’t go hand in hand. Through its innovative business strategies and a focus on value-conscious shoppers, Snapdeal has been able to achieve this.The process is very clear and simple- it works directly with manufacturers, small-scale enterpreneurs and sellers and eliminates the middlemen. This helps these sellers reduce production costs and sell their products directly to the customers while maintaining their quality. It also collaborates with these vendors to support private labels which act as affordable alternatives to high-end brands, thereby reducing the costs of branding and marketing for such products.
It makes bulk purchases from suppliers, ensuring that reduced costs run down to the consumers and focusses on affordability and quality, which is a major driver for purchase decisions in Tier II and Tier III cities in India. It helps them to streamline their pricing strategy. Snapdeal’s lean business model also ensures efficient warehousing, logistics, delivery systems etc. which further justifies the affordable costs. It frequently runs discount campaigns like “Budget Finds”, and “Deals of the day” which makes shopping even more economical. The D2C approach also ensures the elimination of unnecessary layers in the supply chain.
By following these innovative strategies, Snapdeal has built a sustainable and resilient business model that delivers quality products, making it a trusted choice for buying affordable products all over India. You can check out the latest trends on the “Deals of the day” and “Swag store” section on the website and also on the mobile app.
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