Online stores woo mobile app users with discounts

E-tailers equipping themselves with mobile apps to tap both existing & new customers

New Delhi | Published: April 30, 2014 9:39:41 am

In a bid to tap both existing and new customers — coupled with the fact that most of the reach and revenues of e-commerce companies will come from mobile-only users in the near future — online shopping portals are not only equipping themselves with mobile apps but are also offering exclusive deals and discounts to users of the platform.

Jabong is the latest to jump on the bandwagon. Recently, it launched its mobile shopping app — available for download on Google Play store (for Android users) and iTunes (for Apple customers) — offering an exclusive 38% discount to its app users on a minimum purchase of R2,499.

Within three hours of its launch, the Jabong app had 20,000 downloads on Android-based devices. As per a claim made by the Gurgaon-headquartered fashion and lifestyle e-commerce portal, its app is also ranked No. 3 in the overall category and No. 1 in the lifestyle category at Apple’s iTunes store in India.

Arun Chandra Mohan, founder and CEO, Jabong, says, “With an increase in the number of users of smart devices prompted by easy affordability and availability and an improving eco-system, it was imperative for us to launch a mobile shopping app.”

Currently, Flipkart offers free delivery to customers who use its mobile application — an offshoot of the quick delivery plank that has online retailers competing against each other and with several of them launching same-day or next-day delivery features. The Bangalore-headquartered e-commerce company also offers an extra discount of R150 on purchases over R2,000 via the app.

As per a Flipkart spokesperson, up to 30% of the e-store’s orders comes from mobile apps. Also, one out of every three new customers on Flipkart come through the mobile platform.

eBay India, another online marketplace, earlier launched the ‘Deals@10PM’ offer exclusively for its mobile consumers and available on products like perfumes, watches, audio accessories, auto accessories and video games from 10 pm to 12 midnight.

“On eBay India, 24% of all customers visit eBay via the mobile device. With these invaluable insights, we decided

to create the special Deals@10PM offer for shoppers who log on to eBay India through their mobile phones,” says Santosh Rao, head, mobile commerce, eBay India.

As per the company, on an average day on eBay India, one product is bought every 44 seconds via a mobile device (mobile, tablet or phablet).

Snapdeal launched its mobile application about a year ago without any such offer.

However, currently under its fashion carnival theme, the New Delhi-based online marketplace is offering 34% off on the purchase of clothing above R2,499, which is 1% more than what it is offering on websites. As per a company spokesperson, it currently sees 40% of sales coming from mobile apps.

A recent report by the Boston Consulting Group, a global management consulting firm, notes that, at present, around 45% of online consumers in the country use only their mobile devices to access the internet. This is expected to increase to 60% over the next three years.

Abhishek Chakraborty | The Financial Express

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