Yearly Archives: 2013

13 Apr 2013

My 2 bits about the Bitcoin phenomenon

Raj Bhatt

There is a lot of discussion about the BitCoin, the digital currency which is to be issued in finite quantity (21 MM Bitcoins in the next few years). The BitCoin has seen a sudden rise (and then a significant reversal) in its value over the past 2 months. People who try to justify the value [...]

Bitcoin, black tulip, value

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11 Feb 2013

Sign-up discounts: Bad strategy for eCommerce firms

Raj Bhatt

A lot of eCommerce players in the Indian eCommerce industry offer  up to 25% discount coupons on sign-up which give discounts up to Rs. 2000 (~$35). These include Jabong, Myntra, and fashionara, among others. The logic that these players might be using for this strategy may be:1) The discount coupons allow them to acquire new [...]

acquisition, coupons, CPA, discount, Ecommerce, fashionara, gross margin, India, Jabong, loyalty, Myntra, pricing

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07 Feb 2013

Retail discounts and the illusion of success

Raj Bhatt

I came across a blog post for a retail software product (which I will not name here), which said the following: “We have achieved great success with our product implementation at a European online auto parts retailer. Our product was able to deliver a 15% sales lift with an effective discounting of only 2.17%…” I [...]

analytics, breakeven, discounts, Ecommerce, price comparison, promotions, retail, strategy

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04 Feb 2013

JC Penney’s pricing experiments (continued)

Raj Bhatt

I had written about JC Penney’s failed experiments with reducing discount sales a few weeks ago (click here). I had made 4 points:1) Everyday Low Price needs to be tested before being implemented2) Need to continue store-in-store concept3) Need good exclusive designers4) Website needs major overhaul I heard that they are getting discount sales back [...]

discounts, EDLP, JC Penney, JCP, pricing

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