August 29, 2010

Profits Online

I recently shipped a Rakhi to my brother living in Chennai. Infact, that was the first time that I had resorted to any online shopping/ gifts website, reason being lack of time to go buy one and get it couriered. If I overlook ease of logistics and time saving options, I understand that the price of the above two starts from Rs. 200/- and can touch even a steep four digit number. I would not prefer taking the name of the local Chennai online gifts portal that I visited, but the profits hidden made me rethink about my current profession.

I shelled out 261 bucks (may be that 1 rupee was a token of shagun for that portal :D) for a simple rakhi that would have otherwise costed me a maximum of 20 bucks had I bought it from any random street across the country. Let us now subtract the cost for couriering it to - speed post at 30 bucks? All in all, both would have costed me around Rs. 50, but I paid an extra of Rs. 211 for the same. Even if we deduct a meagre 50/- as retailer collaboration amount, it will leave around 150 Rs/- with the person. A minimum of Rs. 150 per rakhi is not a bad amount at all to have in profit!

1 comment:

  1. :) in that 150 rs...he has to pay the commission website through which u have ordered it, he has to make sure the design you have choose is available, and he has to pay extra to the courier service so that it will reach your bro on time...