The Goods and Service Tax (GST) rollout from July 1, 2017 ushered in pre-GST sales as many retailers anticipated a higher tax rate under the new system. CashKaro.com, India’s largest cashback and coupons website, dug up some information to find out key insights on how these sales fared for e-commerce companies.
The pre-GST sale period saw 165 per cent rise in average number of orders received compared to normal days. In fact, the average order value rose by 24 per cent during this period. What must be noted though is that the average discounts offered by retailers too went up from 30-50 per cent to 40-80 per cent.
While most top retailers had eye-popping sales lined up for all users, the most significant discounts were served by Myntra, Nykaa, Jabong and Flipkart. Adding to it, users got some pretty sweet deals with extra cashback offered by CashKaro over and above the great discounts.
CashKaro offered upto 40 per cent extra cashback as real cash on all sales placed during pre-GST period. Some of the best deals were:
Owing to these massive discounts, retailers performed exponentially better during the pre-GST sale period. Flipkart and Nykaa saw a whopping 105 per cent and 250 per cent increase in number of orders placed via CashKaro, respectively. Myntra witnessed a massive 276 per cent increase in sessions while Jabong and Amazon saw over 100 per cent increase in clicks from CashKaro.
Commenting on the insights, Co-Founder, CashKaro.com, Rohan Bhargava said, “The pre-GST sale period was no less than pre-Diwali season. While end-of-season sales (EOSS) coincided with the GST roll out from July 1, a shopping frenzy gripped everyone given the uncertainty in prices after GST. All top retailers unveiled a bevy of offers to entice shoppers including those retailers who don’t usually offer discounts.
While the average discounts offered by retailers grew from 30-50 per cent to 40-80 per cent, at CashKaro, we witnessed 165 per cent rise in the average number of orders. It turned out to be a great success since these discounts were coupled with increased cashback rates from CashKaro.”
In terms of the categories that sold the most during these sales, our data pointed towards Mobiles & Electronics (25 per cent), Fashion (23 per cent), Large Appliances (20 per cent), Health & Beauty (17 per cent), and Grocery (15 per cent). Now that top brands and quality products are available online, consumers are clearly lapping them up.
While the peak dates for shopping were June 24 – June 26, the peak time when consumers shopped the most was between 11 am to 2 pm slot. It’s apparent that buyers were eager to save while they shopped for products that would possibly cost a lot more once the Goods and Services Tax was levied.
This data offers some key insights on how consumers behave during massive sale periods and e-commerce companies can easily use this information to push the right categories and products in subsequent sales.