Affiliate sites gain as e-commerce battle intensifies: Early last month, when Flipkart was heavily promoting its largest single-day sale, rival Amazon India was busy courting online discount coupon-sellers, price-comparison websites, cash-back companies and other so-called affiliate networks to help drive traffic to its own site. Amazon raised commissions by as much as 50% to affiliates two days before Flipkarts Big Billion Day sale. It then bumped them up again on the day of the sale itself, October 6. Online retailers lure customers by offering the cheapest price tags. But rising competition means rivals are trying to ensure that they have an advantage on all possible battle fronts. No wonder then that Amazon is getting aggressive on affiliate commissions as Indias e-commerce business evolves rapidly, prompting homegrown sites such as Flipkart and Snapdeal to play the catch up game. Such affiliates are typically sites that sell coupons or lure consumers with cash-back offers. They receive commission on every transaction they bring to e-commerce companies in the form of commissions. Affiliates are estimated to account for about 8% of e-commerce sales in India. Since Amazon offered us double commission, a lot of affiliates like us on the ground were pushing Amazon more on that day (October 6), said Swati Bhargava, cofounder of cash-back site Cashkaro that also works with Flipkart and Snapdeal besides other online retailers. Higher commission helped Cashkaro to offer better cash-back deals to consumers, Bhargava said. #TheLastHope #Ecommerce #OnlineShopping
Posted on: Sat, 15 Nov 2014 19:55:59 +0000
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