While Flipkart and Amazon India are getting tired of battling over the top spot during the festive season sale this year, apparently, Snapdeal has come out of the blue claiming to have achieved profitability during the sale season.
In an official press statement the company claims that during the period September 1, 2017, till October 20, 2017, Snapdeal has not only increased its sales but have increased its net margin by six-fold as compared to the festive season last year.
Net margin is the money that the platform makes as sales commission after deducting the costs of fulfilling the order, including logistics costs. As stated by Snapdeal, the ability to generate a positive return in times of hyper-competition and aggressive discounting comes from a well-defined strategy that focuses on building depth in select categories and steadily increasing the efficiency of operations by optimising all operational processes.
What Might Have Worked In Favor Of Snapdeal?
The company statement further added that the Snapdeal chose the festive season to curate the best deals on products that its core audience buys often, including merchandise like sarees, watches, footwear, kitchen tools and utensils, electronic accessories, personal care and value packs, among others. Thereby worked in the favor of Snapdeal in becoming profitable for this festive season.
The recent festive season also saw Snapdeal tie-up with banks such as HDFC, Axis, American Express, and leading brands offering freebies like Spice Jet, Yatra.com, BookMyShow and more, to entice its customers.
Festive Season Sale Battle 2017: Chalked Out Over $1.5 Bn Ecommerce Sales
Last month, while Flipkart held its five-day mega event Big Billion Day Sale between September 20-24; Amazon held the ‘Amazon Great Indian Sale’ for four days, from September 21-24.As per a recent RedSeer Consulting report, the ecommerce sector saw highest ever sale performance over the five festive days for the period September 20-24, 2017.