02 Dec 2020 00:34

Joined:	21/07/2011
Level:	Gold
Points:	7433

Points:	5

Banks and e-commerce giants colluding to destroy offline indigenous business.

With growing craze of online shopping among people in general as well as ever expanding online market in smaller towns is threatening the offline business. This danger has become more evident with banks collaborating with online e-commerce sites like Amazon and Flipkart to provide cashback on purchases upto a certain limit.

Banks provide huge cashback offers on their respective cards and that is an easy way to entice anyone to make online purchases. In the end the consumer gai s as he gets huge discount, banks gain with huge volume of transactions and e-commerce sites with huge sales, but, a section of business i.e. the offline business suffers as they do not get benefit of cashback discounts by bank.

Banks do not offer cashback upto 10% or any other percentage on offline purchases. Shouldn't banks also offer such incentives offline so that people also make offline purchases?

Here the small business and offline business sufer and that too very badly. Shouldn't there be some mechanism to bring about a level playing field for both offline and online business? Banks should be transparent and fair in offering incentives for both online and offline transactions.

#716513

02 Dec 2020 04:51

Joined:	12/10/2009
Level:	Platinum
Points:	227711

Points:	5

I will not agree with the author that the banks are colluding with the online portals and stopping the shopping activities of offline shops with cash offer larges. In fact the payment made through the gate way of hired private firms are holding the payments of the giants and thus getting bad name to the banks for holding the payment. There are cases when the amount has been debited to purchase Saree and the amount not gone to the portal which are dealing on line and thus the holding of amount by the gate way payment giants creating hurdle for the banks and e commerce sites getting bad name from the customers. There are instances when the payments made in the second week of November has not reached the customer as the return back money from the portal for the damaged goods and thus reputation has gone for the hit.

K Mohan @ Moga
'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease

#716535

02 Dec 2020 10:56

Joined:	07/04/2011
Level:	Diamond
Points:	47648

Points:	5

Banks offer cashback offers only on very big portals like Amazon, Flipkart, Bigbasket, etc. as they have a good understanding of shopping portals, selling dealers, and banks. On these big platforms only, a large number of customers from throughout India buy many things ranging from small items to very costly items. For many customers when they buy very costly items, the banks give loans with interest in EMI. From these portals, customers get loan sanction for items in a fraction of seconds if they got that bank debit or credit card. In offline if we take the item on loan, it takes a long time to sanction of loan and that needs application procedure. When compared to online shopping, the cost of the item is much higher in offline shopping. As more customers are attracted to these portals, banks for their interest loan business maintain a good relationship with these online portals.

#716567

02 Dec 2020 15:16

Joined:	02/06/2009
Level:	Platinum
Points:	94066

Points:	4

Offline business is costly these days. The rates of items are high offline when compared to online prices. I think online business need not have huge stocks to sell. They can direct from the company godown itself or they can keep marginal stocks. But offline requires good stocks.
Banks wanted the money to be on roll. Otherwise, they have to keep the money in their strong rooms and pay interest to the depositors from bank's money. So for them, lending is very important. That is why they go for cashback offers etc. That will make them get some additional money and their money will be on move always.
Banks are also very careful and they will go for this cashback offers only for the transactions with a selected few only. They always play safe.

drrao
always confident

#716596

02 Dec 2020 20:57

Joined:	10/12/2016
Level:	Platinum
Points:	65251

Points:	4

In the business arena whether it is offline or online, the efficient and those who have marketing techniques can only survive. The competitiveness in business is always cut throat and those who cannot adopt to the changing environment lose the battle. The online stores have to increase their sales for making profit and banks have to issue their cards for earning card fees or retaining the customers and when both combine to form a union it becomes a win-win situation. It would definitely harm and affect the offline business and we are seeing that threat looming on the heads of the street corner provision shops in our areas.

Knowledge is power.

Banks and e-commerce giants colluding to destroy offline indigenous business.

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