Online sales have definitely become a necessity. With our busy schedules, we do not have the time to go to a mall or a store and spend time selecting the perfect dress or the perfect watch. Online retailers sell it all. Moreover, all this at the touch of a button. What more could a consumer ask for. Too good to be true? Here we give you the harsh reality of two major online e-tailers and how the customer is affected by it.
Flipkart used to control the online selling market and at one point of time held the monopoly. They did everything for the customer and even offered free shipping, irrespective of the order size. This built trust in the market for Flipkart and the company grew rapidly. Flipkart grew confident and went on to woo the customer by various sales and deals. This certainly created a strong marketplace for Flipkart with no one catching up. Flipkart even sold their own products and took responsibility for each sale.
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Enter Amazon, and the whole scenario of online retail shopping changed, Amazon introduced the concept of ‘have a product, sell it online’. This certainly interested many customers. Everyone was suddenly interested in what the common public wanted to sell. Amazon slowly started eating Flipkart’s market share and threatened Flipkart’s number one position as an e-tailer. While Amazon slowly at into the market, other players slowly entered the foray and killed the monopoly in the market.
The customer is no doubt spoilt for choice in today’s online market. Flipkart has been an established player; however, Amazon has threatened to become the number one choice. One downside for Flipkart is that they started doubting themselves. They even squashed the free shipping service for orders below INR 499. This was an obvious attempt to follow the footsteps of Amazon who introduced a similar offer. What Flipkart never realized is that Amazon started with this offer and Flipkart just copied it. This meant that all customers who were loyal to Flipkart due to free shipping started switching loyalties.
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Flipkart also introduced the concept of enabling the common person to sell products via their platform. This meant that Flipkart lost control of the quality of products sold by them. This was a big blow, as Flipkart built its trust based on high quality product offerings. This was another attempt at becoming like Amazon. Where Flipkart failed is an attempt to become like someone else. They had created a niche for themselves and should have built on that reputation. Instead, they tried to wrestle back their market share by imitating its biggest competitor. So much so, that the online sales introduced by Flipkart were identical to the ones offered by Amazon. It was as if Flipkart was hassled and had run out of ideas.
Today, both e-tailers have created a market niche and name for themselves. They have built their loyal customer base and always attempt to tempt customers over. Various marketing strategies and sales make it better for customers. One thing that stands out in favor of Flipkart is their innovation in the online market segment and making lives easier for customers. Amazon, on the other hand, has taken the world of online marketing to the next level and has succeeded in making a name for them in an already crowded market.
Our final verdict would depend on your decision and preference. Both companies offer similar products, however their strategies change with time. Take advantage from the offerings and benefit from both companies equally.