Paytm, the online retailer cum mobile payments company held a three-day pre-Diwali sale and the same ended on November 5. During this three-day sale, the platform has generated revenue of Rs 300 crore. This revenue highlights the success of the Alibaba backed company in implementing the new online-to-offline model.
Apart from mobile phones and apparels that topped the sale, there were many buyers purchasing bicycles and motorcycles. Paytm sold more than 500 Mahindra motorcycles and over 1,000 bicycles. These were sold in the new product category. Though the purchases were made online, the bikes were delivered to the buyers from the dealerships. This is an online-to-offline model, stated the Vice President of Paytm’s Business, Saurabh Vashishtha.
The sales of mobile phones increased 5 to 6 times than the average everyday order rates. The sales of the fashion products increased 6 times. As expected, the electronics category registered the most sales, and this helped the e-commerce platform post a five fold increase in its number of orders placed and GMV (Gross Merchandise Value). This is in comparison to the everyday averages, stated Vashishtha. The GMV is an estimate of the maximum price of the goods as well as services that are sold on a firm’s platform. The same is higher than the actual revenue of Paytm during the three-day sale.
Paytm has met its target of generating Rs 250 crore to Rs 300 crore during the sale and achieving peak traffic including both transactions and shopping. The traffic surged to 6 to 8 lakh simultaneous users that is an increase of 10 to 15 times the peak traffic on the site on an average day.
Paytm and Mahindra Two Wheelers entered an exclusive tie-up to sell the Mahindra Centuro motorcycles and the Gusto scooters on the former’s platform. The retailer offered up to 25 percent cashback on the bicycles that were priced competitively to help increase the sales. Moreover, the online-to-offline model proved that the value added services are getting importance in addition to the price.
