With the vibrant colours of the Indian Republic Day on the horizon, the leading e-commerce giants, Amazon and Flipkart, are poised to ignite another wave of festive sale excitement. In a quest to unravel the dynamic landscape of online shopping, we delved into the realm of electronics—examining 500 carefully chosen SKUs spread across 10 subcategories. These meticulously selected products promise identical matches on both platforms, Amazon and Flipkart.
Our analytical lens zooms in on the pulse of this electronic marketplace, capturing the essence of the Republic Day sale fervor.Spanning the period from January 15th to January 20th, this exploration unveils the stories behind the products, the pricing strategies at play, and the intriguing patterns that unfold as consumers embark on a digital shopping spree during this celebratory season.
What discounts did republic day sale witness?
During the pre-sale period, Amazon is offering an enticing discount of 32.84%, while Flipkart is slightly behind with a pre-sale discount of 28.93%. However, once the sale is in full swing, Amazon boosts its discount to 36%, while Flipkart follows closely with a 33% post-sale discount.
Adding to the intrigue, both e-commerce giants have experienced a surge in discounts during the Republic Sale season. Amazon witnessed a 3% increase, bringing even greater savings to shoppers. On the other hand, Flipkart raised the stakes with a significant 5% hike in discounts, making the Republic Sale an even more compelling shopping event for consumers.
Check out the similar insights we extracted from the Amazon Prime day Sale!
Who offered better prices?
An intriguing pattern emerges when examining discounts across ten subcategories on both Amazon and Flipkart.
Mobile phones was the most prominent category, witnessing discounts for approximately 25% of the products, in stark contrast to televisions, where only 2% enjoyed price reductions.
However, it seems Amazon favoured the subcategories of washing machines and geysers the most compared to Flipkart. This breakdown underscores the diverse strategies adopted by Flipkart and Amazon in their pursuit of competitive pricing during these analyses.
If you’re interested, our team found out some deep insights behind the scenes of the Diwali Festive season. Check out the season showdown here!
General price trend:
Among a selection of 500 products, it was observed that Flipkart consistently listed higher prices compared to Amazon.
The data reveals a distinction in pricing strategies between Flipkart and Amazon. Specifically, 31% of products on Flipkart were priced higher, compared to 18% on Amazon. This insight provides a nuanced understanding of the competitive dynamics at play between these two platforms. The instances where Amazon is priced higher than Flipkart is rare indicating their strategy to remain the more cost effective platform in comparison.
Notably, half of the offerings, constituting 50%, were competitively priced on both platforms. This illustrates the intricate balance these e-commerce giants strive to achieve in their pricing structures.
This indicates 250 SKUs have the exact same price pushing into limelight Amazon’s and Flipkart’s observance of each other and how competitive and observant these two platforms are!
How important is it to remain competitive in the market?
In our pursuit to understand the implications of remaining competitive, we examined a premium mobile brand whose identical product was listed on Flipkart.
Case 1: Impact of Market Ignorance
Initially, Amazon priced the product at Rs 5999, a noteworthy 26% lower than Flipkart’s price of Rs 7,550. This price difference influenced the product rankings on both platforms.
As the product on Flipkart underwent a price reduction of Rs 7,485, the Amazon product’s rank declined from 16 to 19. Conversely, when Flipkart increased its price, the Amazon product’s rank experienced a corresponding rise pushing the rank back to 16. The dynamics shifted significantly on the last day of the Republic Sale, as Amazon strategically adjusted its product price to be 33% higher than Flipkart at Rs 7,999. This move causing Amazon’s price to be higher than Flipkart resulted in a substantial 112% fall in the product’s rank on Amazon to 34.
This case underscores the impact of pricing strategies on product rankings and consumer perceptions. It serves as a compelling reminder that consumers actively consider the competition when making purchasing decisions, emphasising the importance for businesses to remain vigilant and responsive to the pricing dynamics in their market.
Case 2: Impact of Dynamic Pricing
Another notable observation in the television sector highlights the vitality of a competitively priced product. This particular item maintains consistent pricing on both Amazon and Flipkart of Rs 10,999. Remarkably, the product’s rank on Amazon has remained relatively stable at the top, circulating between 4 and sometimes experiencing occasional increases to rank 1.
This consistent price has helped this product remain competitive in the market. By maintaining a stable rank, it in turn helps secure your product’s visibility on the online market too.
This underscores the resilience and consumer appeal of a dynamic & competitive pricing strategy, as reflected in the consistent ranking performance on a prominent e-commerce platform.
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