NEW DELHI: Payments and e-commerce services provider Paytm is set to join the Flipkart, Snapdeal and Amazon bandwagon with a three-day festive season sale from November 3.
The Alibaba-backed company will offer discounts of up to 80% and double the cashbacks on all products on its marketplace during the sale, which is expected to generate a substantial part of the Rs 1,000 crore targeted for the entire festive season.
The Noida-based e-tailer will spend Rs 100 crore on marketing during the festive season, which goes on till December and will focus on consumers in tier-2 and tier-3 cities. Paytm has tied up with more than 30 large, small and local delivery companies including Delhivery and BlueDart.
"We're expecting sales of Rs 1,000 crore from the entire festive season," said Saurabh Vashishtha, vice president for business at Paytm. "A significant portion, around 25-30%, of sales from the festive season should come from the three days."
By transaction volumes, home decor, gifts and sweets, large appliances and mobile phones, in that order, are set to be the drivers of Paytm's first festive sale.
Mobile phones and apparel are likely to be the top-selling categories by sales, followed by large appliances and home decor. The classification mirrors a trend among online retailers, including Flipkart, which sold about $200 million worth of mobile phones, two-thirds of its overall sales, from a five-day sale that concluded October 17. While Snapdeal is continuing with its Diwali sale offers, Amazon's three-day Diwali sale ended Wednesday.
"We're expecting the gifts and sweets category to see more transactions, as we saw the trend pick up during Eid," Vashishtha said.Cashback will be a big draw for consumers as Paytm will match the discount offered by the seller, effectively doubling it, on all products. The company may extend this '$ for $' cashback beyond the three sale days, depending on the customer response.
Besides offering a 30-50% additional cashback on pre-bookings of gifts and sweets, Paytm will extend up to Rs 10,000 as cashback on limited iPhone models.
Part of the investment into marketing has gone towards building a logistics cloud platform which Paytm will rely on to get orders delivered in the smaller cities. "We've got 20 regional delivery partners who have been given technological wherewithal to track packages. They now work with us, but can work for other etailers as well," Vashishtha said.