Price Wars Among Online Retailers Fails to Draw In Consumers
During an annual price war among China’s major online retailers ended and have failed to draw consumers as it did in the previous years. Experts say that one reason is because discounts are not high enough.
During the three day price war that was started by JD.com for its month long promotion in celebration of the site’s 10th year anniversary has involved 12 other e-commerce retailers such as Alibaba group holdings, Tmall.com, 51buy.com, suning.com, and dangdang.com. during the price wars JD.com page views increased by 132 percent before the promotion. Suning.com page view increased 708 percent based on the statistics done by a third party online platform that recommended best selling items for these online retailers.
And on the price war this summer JD.com page visit only rose by 36 percent and Suning.com rose by 49 percent before the sale started at 3 pm. JD.com offered some favorable discounts in the decade on several goods, while other websites offered products that were at least cheaper that Jd.com. nut most consumers found that the prices for some items remained the same all throughout the promotion.
Most online retailers are become more rational by pursuing margins rather than revenues. While consumers have grown more sophisticated after several online promotions. Still price wars and promotions are the best way for any e-commerce retailers to drive up sales.