Mobile commerce firm Paytm has recently started with its fashion, and the company is expecting a tenfold increase in fashion category transactions on its online marketplace during the three-day event.
Mobile commerce firm Paytm has recently started with its fashion on Tuesday, and the company is expecting a tenfold increase in fashion category transactions on its online marketplace during the three-day event.
Paytm is making big offers to entice buyers to the sale, in which the company says nearly 15,000 merchants are participating.
"We would be running offers like 100% cashback on some items and at least 50% or more across more than five lakh products," said Shankar Nath, senior vice president at Paytm. "Also, given the summer and the monsoons that have started in certain places, there is a significant movement to online shopping in fashion category. We are looking to take advantage of that with a combination of very large inventory, attractive offers and huge advertising campaign."
Paytm, backed by Chinese ecommerce company Alibaba, claims to have about 40,000 merchants on board already.
The e-tailer, which claims to be recording gross merchandise value (GMV) run rate of $1.5 billion - that sales would be that much if they continue at the current rate - is looking at a GMV run rate of $3-4 billion by the end of March next year on the back of strong growth in transactions on its marketplace. The mega sale could help the company reach the target.
"There is always revenue and GMV expectations when you are running a mega sale," Nath said.
"The other thing we are trying to do is make more and more people try out our online marketplace model. These sales can also be looked as a customer acquisition measures. We will get a lot of new users on our platform during the sale. It serves multiple marketing purposes," he said.
Ecommerce players have in the past struggled to carry out operations smoothly during much-hyped sales as customers face a whole lot of technical glitches.
Recently, online fashion retailer Myntra has apologised to customers for technology glitches and order failures during its heavily advertised weekend sale. Flipkart's last year Big Billion Day sale was also marred by technical issues.
Explaining Paytm's preparation, Nath said: "Although we are relatively new in the marketplace as compared to our payments and recharge business, we are learning everyday as we go along. And today we are at a stage where we are very comfortable in running a mega sale. We couldn't have done this a year before. But in the last six months, we have become as good as anybody else in the business."
Paytm's teams of merchants and logistics personnel have been working day and night to make this sale glitch-free. The company is making sure that the merchants are adequately stocked to meet heavy demand.
Paytm has already done a couple of fashion and electronic sales. "The sales are an ongoing activity. We will continue to come up with these kind of sales for various categories," Nath said.
Paytm, which started as a digital wallet and recharge company, has a user base of eight crore on its overall online paltform and does 20 lakh transactions each day.
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