GST effect: Flipkart, Myntra sales soar due to stocks clearance discounts

E-marketplaces registered a 165% rise in average number of orders received in the pre-GST period compared to the earlier months.

The bevy of discounts offered by e-commerce companies like Flipkart and Myntra ahead of Goods and Services Tax rollout seems to have paid off as the companies saw a significant rise in orders in June, a study released on Wednesday showed.

E-marketplaces registered a 165% rise in average number of orders received in the pre-GST period compared to the earlier months, claims a study by cashback and coupons site, CashKaro.com. The study is based on the traffic that CashKaro redirected to the sites it has tied up with, including 20 major players like Amazon, Flipkart, Jabong, Myntra, Nykaa and Koovs.

Unsure of what would happen to their stocks once the unified tax regime was ushered in, offline and online retailers showered lucrative discounts to clear as much inventory as possible in the days leading up to July 1. CashKaro said the average order value shipped by the e-commerce companies rose by 24%, while the average discounts offered by retailers went up from 30-50% to 40-80%.

A Flipkart spokesperson told Mail Today that the firm offered discounts ranging from 50-80 per cent, with selected merchandise being marked down by 80 per cent. Flipkart also said they registered a spike of 130-140 per cent in the category's sales in the pre-GST period. Online retailer of beauty and cosmetic products Nykaa said they saw a 30% spike in sales a day before the GST roll out.

"Since then, we have maintained daily targets to keep in line with our Rs 600 crore GMV run rate," said Nykaa chief business officer Nihir Parikh.

The CashKaro study also showed that the categories of mobiles & electronics (25%), fashion (23%), large appliances (20%), health & beauty (17%), and grocery (15%) sold the most during the sales. Amazon India and Myntra did not respond to queries, while Jabong could not be contacted. Pre-GST sales peaked between June 24 and June 26, while online consumers shopped the most from 11 am to 2pm, the study said.
study said.

Article source:yahoo.com