Reasons Behind Amazon & Flipkart Huge Discounts
In the world of online shopping, where you have many choices and discounts waiting, big players like Amazon and Flipkart have a unique trick. They offer something special when you use your credit card – discounts. But why do they do it? What’s the story behind these deals? And how does it benefit you, the buyer?
We’re going to uncover the reasons why online shopping platforms offer these credit card discounts. We’ll break it down in simple terms, showing you how it benefits everyone involved – from the online stores and the banks issuing the credit cards to you.
Benefits of E-commerce Platform
These e-commerce giants are like marketing experts working on behalf of the banks. When you come across discounts offered by a particular bank, it’s like receiving a subtle invitation. When they say, “This card can unlock fantastic deals on our site,” it makes you more likely to consider applying for one of those credit cards.
But it doesn’t stop there. E-commerce platforms also benefit from this partnership. They don’t just offer these discounts out of goodwill; they receive a commission from the banks for encouraging customers to apply for their credit cards and use them for transactions. So, it’s a win-win-win situation – you save money, the bank earns, and the e-commerce platform gets its share.
Remember that feeling when you discover a great deal? It’s like a little celebration in your mind, and you can’t wait to experience it again. E-commerce platforms understand this feeling too! By offering credit card discounts, they’re not just making one-time sales; they’re also building customer loyalty. They want you to keep coming back, not just for one festive season but for all your shopping adventures.
Think of these discounts as a small gift from e-commerce platforms – it’s like finding an extra chocolate chip in your cookie. Seeing that special price tag because you used a specific credit card makes you feel satisfied with your choice to shop there. And when you feel satisfied with something, you’re more likely to share it with your friends and family, which means even more customers for them!
For e-commerce stores, credit card discounts help attract more shoppers, keep them loyal, and create a sense of exclusivity in their online stores. It’s a win-win situation – they boost their sales, and you enjoy more savings!
Benefits for the Bank:
Banks are pretty pleased when you use your credit card to shop online – it’s like a mini-celebration for them. You see, every time you make a purchase with your card, they earn a small slice of the pie, typically around 2 to 2.5 percent of the total purchase amount. But here’s where it gets interesting!
They’re so happy to have you as a customer that they often give you a piece of that pie back as a thank-you gift. This comes in the form of cashback or reward points, usually around 1 percent of what you spend. It’s their way of saying, “Thanks for using our card!”
Now, banks are a bit like clubs – they’re always looking for new members. So, when they offer credit card discounts for online shopping, it’s like sending out fancy invitations to join their club. They know that if you enjoy the perks of their card, you might stick around for more shopping adventures.
And banks love it when their credit cards get some action. When you tell your friends, “Hey, I scored a cool discount using my XYZ bank card on Amazon,” it’s like free advertising for them. They want everyone to know about the unique benefits their cards offer, and that’s how they get even more people to join their cardholder family.
For banks, these credit card discounts aren’t just about making money from your purchases (although that’s a part of it). They also see it as a way to grow their community of cardholders, encourage more people to use their cards, and spread the word about how awesome their cards can be. It’s a win-win for them, and for you too!
Benefits for End Consumer:
Save More Money
When you’re browsing online for that shiny new gadget or a beautiful dress, and you spot a special discount for using your credit card, it’s like finding a hidden treasure. These discounts help you keep more money in your wallet, so you can shop for everything you love without breaking the bank.
No-Cost EMI Option
Here’s another great benefit – the no-cost EMI option. Some credit cards offer this feature, allowing you to split the cost of your purchase into equal monthly payments without any extra interest charges. It’s like getting a loan for your shopping spree without paying anything extra, making those big-ticket items much more affordable.
Earn Reward Points and Cashback
It’s not just about discounts. Many credit cards give you something extra – reward points and cashback. Every time you use your card, you earn points that you can later exchange for more discounts or get cashback. So, you’re saving money today and building up rewards for more shopping fun in the future.
Enjoy Repeat Bonuses
Sometimes, you might receive extra cashback as a reward when you shop at an online store for the first time during a festival sale. It sweetens the deal and encourages you to explore new online shopping destinations.
Shop Smart within Your Budget
Before you start your shopping spree, it’s a smart idea to pay off any outstanding credit card dues and set a budget. This way, you can spend your money wisely and enjoy discounts without worrying about hefty bills later on.
Impact on E-commerce Growth
Boosting Sales – Amazon, Flipkart, and other big e-commerce players offer discounts on credit cards during festive seasons, it’s like giving their sales a turbo boost. Shoppers flock to their websites, and products quickly disappear from the virtual shelves. This surge in sales pumps up their earnings and contributes to their overall growth.
Festive Excitement – Festive sales are akin to online shopping festivals. People eagerly anticipate them, and credit card discounts add an extra layer of excitement. It’s not just about buying necessities; it’s also about treating yourself and getting those items you’ve had your eye on. This festive buzz injects energy into the e-commerce industry.
Drawing New Consumers – E-commerce platforms use credit card discounts as a magnet to attract new customers. When these customers see a special price because they used a specific credit card, they’re more inclined to give it a try. So, it’s not only about keeping existing shoppers happy but also about welcoming newcomers to the world of online shopping.
Effective Marketing – These additional discounts serve as a powerful marketing tool. When shoppers stumble upon a fantastic deal, they often share it with friends and family. This word-of-mouth marketing helps e-commerce platforms reach a broader audience, leading to more shoppers joining the party.
Broad Impact – The growth of e-commerce doesn’t just benefit online stores; it also has a ripple effect on other industries. With more online sales, there’s an increased demand for shipping services, benefiting logistics companies. Additionally, digital payment platforms thrive as more people opt for online transactions. So, it’s not just a victory for e-commerce but for the entire digital ecosystem.
Top Lifetime Free Credit Cards
Let’s find top credit cards that won’t cost you a penny annually and come with some great benefits. These are like your trusted shopping companions when you want to make the most of those credit card discounts.
1. IDFC FIRST Bank Wealth Credit Card
- Offers up to 10X reward points.
- Gives you a 1.5% Forex Markup, airport lounge access, and spa privileges.
- Provides travel insurance and accident cover.
- Allows interest-free cash withdrawals for up to 48 days.
- Interest rates range between 0.75% and 2.99% per month.
- Ideal for travelers and those looking for low interest rates.
2. Axis My Zone Credit Card
- Offers discounts on daily expenses.
- Provides cashback on movie tickets and airport lounge access.
- Waives the joining fee if you spend more than Rs. 5,000 within the first 45 days.
- You earn 4 to 40 reward points for every Rs. 200 spent on the card.
- Great for lifestyle benefits and rewards.
3. Indian Oil Axis Bank Credit Card
- Provides accelerated reward points on fuel purchases.
- Offers a cashback of up to Rs. 250 on fuel expenses within 30 days.
- Features fuel surcharge waivers and discounts on movie tickets.
- Waives the annual fee if expenses cross Rs. 50,000 in a year.
- Ideal for fuel savings and various other benefits.
4. IDFC First Select Credit Card
- Offers reward points that never expire.
- Doesn’t charge a joining fee/annual fee.
- Interest rates range from 0.75% to 2.99% per month.
- Provides complimentary domestic airport lounge access.
- Offers discounts at over 1,500 restaurants.
- Suitable for those looking for a range of privileges without an annual fee.
5. ICICI Amazon Pay Credit Card
- Doesn’t have an annual or joining fee.
- Allows you to shop on Amazon and earn rewards.
- Offers cashback on groceries, recharges, and more.
- Provides non-cost EMI options on Amazon. in.
- Cashback can be redeemed at Amazon Pay partner merchants.
- Ideal for Amazon shoppers and those who want cash-back rewards.
These lifetime free credit cards offer a range of benefits, from discounts on food delivery to airport lounge access. Depending on your preferences and spending habits, you can choose the one that suits you best and enjoy the perks while shopping on platforms like Amazon and Flipkart.
In the world of online shopping, where choices are abundant, Amazon and Flipkart have a special trick up their sleeves – offering discounts when you use a specific credit card. We just uncovered why these giant online retailers are so generous with these unique deals, and how it benefits all parties involved.
These discounts do more than just save you money; they also drive growth in other aspects of online shopping. Delivery companies find themselves busier, handling increased shipments. Online payment services gain popularity as people embrace the convenience.
So, when you spot a credit card discount while shopping on Amazon or Flipkart, remember, it’s not only about saving money. It’s a way for everyone – the online stores, the banks, and you, the shopper – to share in the joy of a fantastic deal. It’s a reminder that online shopping can be both enjoyable and budget-friendly.