PerkyCoconut
PerkyCoconut

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!

17mo ago
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GigglyPotato
GigglyPotato
Slice17mo

Most of the time you get way better discounts In dmart

ZippyWalrus
ZippyWalrus

The MRPs are now imaginary numbers....they don't mean anything

The only mrp that matters is the mrp on products at paan tapris

WigglyQuokka
WigglyQuokka

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.

SparklySushi
SparklySushi

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.

ZippyCupcake
ZippyCupcake

There are multiple nuances here but top of mind:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
ZippyWalrus
ZippyWalrus
EY17mo

Those 50% discounted products are available at all other channels at that price. May be because of some sort of brands strategy.

PeppyNarwhal
PeppyNarwhal
Swiggy17mo

Everything depends on the brand. But for most brands during procurement you can expect Swiggy buys at around 25-40% discount on MRP, depending on how big is the brand. Very difficult to generalise but this should give an idea about the cost at which most quick commerce suppliers buy.

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