It might be shocking to know that an e-commerce giant suffered a loss of Rs 2,000 crore just because of the discount war. Yes, Flipkart had to deal with such a huge loss in an attempt to increase customers and compete with rivals such as Snapdeal, Amazon & Paytm. The damage done during fiscal 2014-15 which ended by March 2015 is about Rs 2,000 crore.
While Flipkart Internet which operates the portal incurred a loss of Rs 1,096.4 crore, Flipkart India which is into wholesale business suffered Rs 836.5 crore. Whereas, The combined loss was just Rs 715 crore the previous year.
Nearly 50% of Flipkart's loss is due to high logistics cost & heavy discounts. The e-commerce firm expects the sales to grow six-fold this year.
Experts say, Flipkart's discounts doesn't made any sense and there is nothing great about attracting huge number of customers when offered goods for a price less than the manufacturing cost.
While Flipkart Internet which operates the portal incurred a loss of Rs 1,096.4 crore, Flipkart India which is into wholesale business suffered Rs 836.5 crore. Whereas, The combined loss was just Rs 715 crore the previous year.
Nearly 50% of Flipkart's loss is due to high logistics cost & heavy discounts. The e-commerce firm expects the sales to grow six-fold this year.
Experts say, Flipkart's discounts doesn't made any sense and there is nothing great about attracting huge number of customers when offered goods for a price less than the manufacturing cost.