Why some analysts believe that 2024 is the last year online stores can offer big discounts

 Why some analysts believe that 2024 is the last year Amazon, Flipkart and other online stores can offer big discounts

Credit image: Times of India

Many analysts predict that 2024 could be the last year for Amazon, Flipkart, and other online retailers. Offering significant discounts due to regulatory changes. market saturation and pressure on profitability One key factor is tightening e-commerce regulations in countries like India, including to protect local sellers and Ensure fair competition Government officials are imposing stricter rules on deep discounting practices. These measures limit the prices that online platforms can subsidize through partnerships with retailers or through exclusive deals.

Moreover, market saturation also leads to change. After years of aggressively acquiring customers through heavy discounting These companies are now under pressure from investors to prioritize profitability over growth. When competition is stable Maintaining large discounts becomes economically unsustainable.

In addition, operating costs increase. This includes logistics, storage and distribution infrastructure. It is eating into profit margins. With the increasing demand for fast delivery and personalized service. Retailers must strike a balance between offering discounts and staying profitable, so many analysts believe 2024 could be the end of the era of deep discounts. As online stores adapt to new business dynamics that focus on long-term sustainability. More than a short-term customer acquisition strategy.

(This article was written by formal algorithm)