JOIN USOnline marketplaces like Flipkart, Amazon, Paytm Mall and ShopClues have geared up to lure consumers with around 80% discounts on fashion, furniture and electronic appliance items to clear their inventory ahead of the GST rollout on July 1.
With GST becoming operational, the tax differential between states with lower tax than the proposed 12% will cease to exist. While Amazon already started smartphone sales from June 19 to 21, Paytm has launched pre-GST sales with exciting discounts.
The sales are necessitated mainly because the sellers, both on the online and offline platform, can not claim input tax credit for goods already bought that get sold after July 1.
Smartphone makers such as Samsung, Nokia and Micromax have issued advisories to online sellers, retailers and distributors that they would only compensate for unsold stock which is billed to the trade 30 days prior to GST rollout and asked them to liquidate old stock on a priority basis.
In a statement, Paytm Mall stated that it has launched a Pre-GST Sale, as merchants across India are clearing their existing stock to gear up for India’s biggest tax reform. “The sale will host over 6,000 retailers across 500+ brands, with all major brand labels participating in the retail extravaganza,” said the official.
This pre-GST sale will see customers buy items, including TVs, consumer durables, premium laptops and DSLRs at up to Rs 20,000 cashback, while products such as bluetooth speakers, footwear and accessories will be sold at up to 50% off and 25% cashback.
“Paytm Mall brand led tie-ups with local merchants has helped it ensure high availability, fast deliveries and smooth installation services for all customers. This sale has come at an opportune time for offline retailers who are looking to offload their entire inventory before the new tax rates become effective,” said the company spokesperson.
The normal practice of ecommerce players is to keep stock in bulk and then sell it according to orders. Now they are placing orders with dealers only after receiving confirmations and clearing the inventory with bonanza.
Flipkart owned fashion ecommerce platform Myntra said it expects to see a 25-fold jump in daily sales during its ‘End of Reason’ (EORS) sale to be held between June 24-26. “The sixth edition of our EORS will be the largest yet, and will see Jabong also participate,” Ananth Narayanan, CEO of Myntra and Jabong.
He added that over 1,800 brands will participate in the three-day sale, offering discounts of 50% to 80%.
Flipkart has included 32 electronic items as SmartBuy Offers. According to the company official, Myntra Shopping Groups will allow customers to form groups (consisting of friends and families) on the platform and shop together. “They will be eligible for multiple rewards and discounts depending on the size of their shopping bags,” states the company.
In a statement issued to DH, Amazon India spokesperson said, sellers decide the pricing of products on our marketplace.
“Sometimes, to promote our marketplace, we host marketing events including promotions and discounts. It is up to the seller as to how he / she wants to use these,” states the spokesperson.
Amazon India has roped in brands like Puma, Reebok and Tommy Hilfiger as part of the sale.
Amazon Prime members will get a minimum of 50% off on clothing and accessories from United Colors of Benetton and Indigo Nation.
ShopClues, which focusses on tier II and III cities, already organised ‘Triple Value Sale’ for two days.