Online shopping isn’t always the best option

E-tailers are moderating discounts and manufacturers have begun to control tightly the prices of goods sold online

The big sales from major online retailers, Amazon, Flipkart and Snapdeal, ended recently. Hyderabad-based Gopi Krishna, who ordered household items during one such sale, realised that online does not necessarily mean cheaper prices. Krishna ordered three ceiling fans for which he paid ~ 1,950 each, including an additional 10 per cent discount on his credit card. When he later inquired about the prices of fans locally, the distributor offered them for ~ 1,750 each and was willing to offer a further discount for a bulk order.

Industry experts say that online retailers have been moderating the discounts that they offer. “Until about three-four years back, e-commerce players offered much higher discounts to attract customers. The discounts have been coming down. If there was 40-90 per cent discount on books earlier, for example, now you will find the discounts are now a mere 10-15 per cent,” says Devangshu Dutta, chief executive of retail consultancy Third Eyesight.

As discounts moderate, it makes sense for shoppers to check their neighbourhood shop or departmental store for prices before making a purchase online. In fact, in the upcoming sale from offline retailer around Independence Day — many starting from August 11 — you can get better bargains than what online shopping websites had offered.

Where e-commerce sites work better: At present, specific product categories like electronics are cheaper online. If you are looking to buy a mobile phone or smart gadgets, the deals and discounts offered online can help you get a good bargain. Similarly, for mid-range televisions, books, cameras, lenses and hand bags, consumers can still get a better deals online. Many electronics brands have also consciously made e-commerce platforms their primary selling channel, and they have limited physical stores.

As e-commerce players are bringing down discounts, they are also adding private labels that are exclusively available on their websites.

Myntra, for example, has private brands such as Roadster, Dressberry, Anouk and HRX. Online grocery retailer BigBasket has in-house brands such as Fresho!, BB Popular, BB Royal and Tasties. Amazon has AmazonBasics. Flipkart owns electronics brand MarQ and furniture label Perfect Homes.

Bargain at physical stores: When Vinod Kumar wanted to buy a refrigerator, he visited an electronic retail

chain. He selected a model that cost ~65,000 which the store was selling at ~10,000 discount. When he checked online, the prices were the same, and he showed it to the salesperson. Instantly, the sales executive offered him another ~ 5,000 discount if he booked the fridge right away. Kumar agreed and asked for the final price the executive could offer. The salesperson responded by offering another ~ 2,000 reduction if Kumar was willing to take a loan to buy the fridge.

If you are buying luxury items such as perfumes, or watches and you ask for a better price, the executive usually throws in freebies such as a miniature gift set that costs 20 per cent of the perfume price or bags. When shopping for a printer, when Ravi Rayala bargained, he got two additional ink cartridges free.

Some products can only be bought offline: Many big brands prefer the offline channel or physical stores. “On an average, for most major manufacturers, online sale is 15-20 per cent. A majority of the sales — over 80 per cent — still comes from traditional channels,” says Ankur Bisen, senior vice presidentretail & consumer products, Technopak Advisors. Many brands, therefore, have tight control on the online prices of their products. They realise that the business of their traditional channel partners (distributors and retailers) suffers if the same product is available at a discount online. Brands such as Casio watches, for example, are not available at a discount online.

Markets for specific goods: Sudhir Vishwakarma wanted to buy computer components. He went to Mumbai’s computer component market at Lamington Road. The retailer made Vishwakarma open the online e- commerce players’ websites to compare prices and offered a 10-20 per cent discount on the online price of each component.

Industry experts say that many cities have such ‘markets’ for specific goods like stationery, furniture, clothes, leather goods, and so on, will continue to remain relevant and competitive. There could be many reasons for such bargains, say industry experts. It could be that the manufacturer is offering such leeway to the store or the store wants to exhaust the inventory. Such discounts are also possible when a shopper is buying multiple items, and the retail chain is making money on one item and is therefore willing to sell the other at cost price.