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How come the online marketing sites are selling goods with such a huge discount? What marketing strategy lies behind it?

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Question added by Rahaf Masri , Account Sales Director , MT3 Digital
Date Posted: 2015/07/23
Deleted user
by Deleted user

The following can be the reasons for cheap prices:

1) They provide a platform where sellers meet the buyers directly, hence the cost of middleman is eliminated

2) They do not have any retail channel as per say hence they save cost on shop rent, electricity cost, etc, the expenses entailed with abrick and mortar store

3) They usually tie up with courier companies and crack an excellent deal for each delivery per month

4) They start their own delivery company like Flipkart in India did, hence saving on the delivery charges 

 

Jeffer Basilan
by Jeffer Basilan , ICT Systems Administrator , Rezayat IT and Communications Company - Rezayat Group

Most of them doesn't have tax and most of them were stored in a place wherein you don't need to pay for storing it.

Mehboob Ali Laghari
by Mehboob Ali Laghari , Social Mobilization Team Incharge , TRDP-European Union

Cost effectiveness is the secret.

Khaled Anwar
by Khaled Anwar , Senior Sales Engineer , "Automotive company''

I agree with the experts answers. Thank you.

Muhammad Yousaf
by Muhammad Yousaf , Director , Zia Saeed & Co. Pvt. Limited

In Online selling the companies almost eliminates the cost incurred on Storage, Margins of  Middlemen (Distributor, Wholesaler and Retailers)  which is a handsome amount.  This would then passed over to the Customers.  This is how the heavy discounts are offered to end consumers even earning the profits on sale of their Products.

Zaid Amer
by Zaid Amer , Academic Director , SIST British University

I agree with the answer of "Ruchira Shah", the idea of on-line selling is that, eliminating any extra charges that are not related to the product/service provided, such as, rent, middlemen, etc. Therefore, offering the best competitive prices in market. 

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