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Essay / Data Analysis and Interpretation: Buy One, Get One Free that is, in economic terms, the marginal utility of money for each consumer is said to be different. This makes it difficult for the marketer to convince consumers to part with their money. Before Flipkart, e-commerce was done through credit/debit card, where payment had to be made at the time of ordering. Offering high discounts (which is common in e-commerce) is considered by many to be a potential and risky fraud. Well, that's the Indian mentality. No one likes paying the entire payment upfront! Here, retailers need to know that delaying payments can significantly increase the consumer's willingness to purchase. Flipkart was the first to introduce the “cash on delivery” system in e-commerce. This simply means that you have to pay cash only when you receive the ordered product. Flipkart just understood the Indian mentality, which worked wonders for them. Cash on delivery created trust in the minds of people who were tired of making online payments by disclosing their card numbers. Cash or card payment on delivery accounts for 60 percent of Flipkart's sales. Offering a varied inventory of titles like 30-day replacement guarantee, cash or card delivery option, doorstep delivery, has made online shopping more comfortable and reliable for consumers.2) POWER of the word “FREE”: - Consumers cannot understand why retailers offer free promotions for a purchase, even if it is not better for consumers. Economist Alex Tabarrok argued that "the success of this promotion lies in the fact that the price actually takes into account the fact that two items are sold." This strategy ...... middle of paper ...... rmined to provide excellent customer service. Flipkart customers are more satisfied than some of their competitors like Tradus.in, Indiaplaza.com. Therefore, the learning experience for other sites could be to create amazing experiences for their customers. This will improve their customer retention rate and create brand loyalty in the minds of customers.3. Another success mantra is to continually innovate products. Initially, Flipkart had only started selling books and since then it has only added a huge range of titles to its product line.4. The consignment model and robust logistics have set Flipkart apart from other e-commerce sites. This is why other e-portals should very well focus on demand-based purchases and their logistics. The best thing that e-portals need to understand is that to succeed in India, they need to be the gods of distribution..
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