Most ecommerce retailers have conceded to the fact that they are offering lower discounts. Earlier, e-customers could enjoy high discounts to the tune of nearly 20 – 40 % coupled with delivery and customer support.
Currently, ecommerce retailers have reached a certain level of market stability wherein they can stay afloat in serving their existing customers without adding in new customers to their kitty. They believe in retaining customers who prefer a smooth and hassle free shopping experience rather than solely relying on discounts. For customers, trust and service play a vital role in shopping along with discounts, whether online or offline.
Most ecommerce experts opine that this is a normal phenomenon which has been happening across ecommerce markets based in other parts of the world too. Earlier, the funding received by these retailers was majorly diverted towards reducing the discount gap while these days, the funds are being utilized for equipping themselves with better technology, skills and logistics services.
Agreed, attractive discounts were used as a stepping stone to encourage people to shop online but to evolve to the next level, most ecommerce retailers will have to work towards enhancing their product mix and customer service and support. This could build up the customer loyalty and trust which becomes a vital parameter for emerging as a key player in this segment.
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