Swiggy and their discounts. How?
I have a genuine question. I am a frequent user of Swiggy Instamart, as I’m sure half of us here are. I’m always baffled by the crazy amounts of discounts swiggy levies on the MRP. I’ve bought basic household groceries at a discount of 50% and more. Not through a coupon code, just slashed prices. With swiggy going profitable, how do they manage to do so?
Do they buy products in bulk from a cheap source? Why does my neighborhood shopkeeer not know about this? I have so many questions!
Most of the time you get way better discounts In dmart
The MRPs are now imaginary numbers....they don't mean anything
The only mrp that matters is the mrp on products at paan tapris
Probably because they wanna boost instamart sales. You'll not find these kinda discounts on food delivery now tho, as they've established significant customer base. Could be wanting to do the same in Instamart area.
MRP indicates the maximum seller can charge. It doesn't mean the product is worth that amount.
Online platforms manipulate people into buying by offering a huge discount on MRP, so that people 'feel' satisfied that they've got great deal. Discount means jackshit these days.
There are multiple nuances here but top of mind:
- The item type, e.g. oils have low margins, but chips will have better ones and some D2C products could have great ones. So your overall order mix really matters.
- Focus categories: there are certain categories that are better for long term customer value, and the platform can decide to invest money here if it makes long term sense, or is a growth lever.
- Brand push: sometimes, brands want to winback share within the platform and may inject steroids to achieve this. This may be overindexing on merchandising or discounting.
- Market aggression: depending on the growth intensity that the platform is going after, or if the market is highly competitive, the platform may decide to invest on levers which display either great ROI or sure shot incrementals.