How Flipkart, Amazon Make Money From Exclusive Deals?


BANGALORE: The competition between online retail companies is just blooming with online retail companies racing to attract the most number of customers to buy on their online portal. The dilemma is getting big product companies for deals so that it boosts the sales of their particular. The new fight is not just about conquering the Indian online market but getting exclusive deals that makes big sales for them.

Amazon just whooped in an exclusive deal to be the sole online seller of Microsoft’s entertainment book, the Xbox one which will be available from September 23. They has also made deals with Samsung to seller their Smartphone product, the Galaxy K Zoom phone, back in June and also made similar agreements with Karbonn as well.

Flipkart, on the other hand has also made some exclusive deals that gave them the rights of being the sole Sellers of the product. Flipkart had an agreement with Google acquired, Motorola to seller their phone product, the Moto G 90 days before it was released in February this year.  Adnani had commented about their deal with Motorola saying that it was a deal that made Flipkart’s brand portfolio bigger, though they had other brand deals as sole sellers. Flipkart also has another exclusive deal that will allow them to run the market with the agreement that was made with Rupa Publications to be the exclusive seller of the new Chetan Bhagat’s bestseller, ‘Half Girlfriend’.

The flip side to this whole race to get exclusive deals is that as some experts have said that this will limit customers from being able to get the best price and also not allow them the option of comparing prices online. They will be subjected to the price that is marked by that particular online retailer which will not be welcomed by customers.

"From the brands' point of view, the big win (of an exclusive partnership) is the huge amount of visibility they get because it is in the interest of the ecommerce partner to provide that extra push," observes Devangshu Dutta, chief executive of Third Eyesight, a retail consultancy, reports times of India.

As online shopping keeps expanding, the concrete stores under buildings will look towards changing their way of selling to customer in order to get the highest output no matter the avenue. This is why exclusive deals will rise with the need to reach customers through all the avenues available.

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