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E-commerce companies have incurred combined losses of around Rs 1,000 crore due to heavy discounting strategy and this model is not feasible in the long run, a PricewaterCoopers report said. "Offering lower prices will not be viable in the long term. Despite luring in customers in the initial stages, lower prices won't be able to retain customers in the long run. While the discounting will continue for some more months, e-tailers are thinking beyond discounts to acquire customers and build loyalty," said the report. The growth in the internet users has prompted many to launch their business online. The competition has prompted them to provide unhealthy discounts to their customers. This has lead to bleed the e-commerce companies.

The combined losses faced by e-tailing companies as a result of their discounting strategies now stand at almost Rs 1,000 crore. "A majority of e-commerce players are start-ups and, therefore, are working towards rapidly scaling up their market share. They have been aggressively planning and implementing discounting strategies, which would make the customer sit up and take notice," Pwc report said. E-commerce cannot be ignored for a successful business. The business has to be priced intelligently to avoid losses and to be in the business.

By Premji