I have always wondered a few actions of E-Commerce websites.
I have recently purchased products from this one website called CondomPoint.com
Besides their vaste range of products, they are offering crazy discounts.
Eg: There is a product called Kohinoor Silk Condoms which I purchased for Rs. 9 only whereas the MRP is Rs. 35. (More than 70% off)
I have purchased the same in Bulk and I’m sure there will be many people who would do the same.
One more point to Add here, the products are all expiring post 2 years.
Till Recently, they were selling Durex at 50% off – Which I have purchased as well. Same thing with the expiry Dates.
Now, My questions are as follows:
1. How do such websites manage their expenses?
2. What is the purpose/point of running such a promotion, won’t they run into HUGE losses if they continue to sell in this manner?
2a. It would make sense if they ran a promotion on a product such as this which had an expiry of just 1 month remaining BUT what’s the point of selling at such low rates that too with an expiry of over 1-2 years??
3. What is the Ultimate purpose of such websites? Is it, Profit (long term), Sales, Customer Database or something else?
4. What is the best exit or Future for such Upcoming websites, especially for those are “Traders” – “Middlemen” and who are not manufacturers themselves ?