Thought of buying a phone few weeks back. Flipkart's name came into my mind and immediately I started searching mobile phones in the range of 15-30k category. Saw couple of Samsung, Motorolla etc. but got stuck with Nokia Lumia 800. The price Flipkart was quoting was around 24k and was the best price that any ecommerce site could quote(I thought). But flipkart proved me wrong, when I checked the same phone in Indiaplaza. I was shocked, they were offering the same price but 3k cash back (effectively that would have cost me 21k).
Why this much of a difference - Flipkart is playing on volume, prices should be much lower than any other ecommerce website could offer. In ecommerce business cost is much lower, no need to carry high level of inventory, less overhead cost etc. I don't know the reason why they are charging more.
Is this premium for replacement guarantee?
Is Indiaplaza into price war game to retain business share?