It's time e-commerce sites allow you to bargain!
Considering how much Indians love to haggle, a site that allows consumers to bargain could be the next big thing
November 11, 2013 / 11:23 IST
Ajeet Khurana
The respectable term is 'negotiation'; the Indian word for it is 'bargaining'. Let's face it. Indians love to haggle, from petty pennies on the price of vegetables to much larger sums when it comes to negotiating business deals. Bargaining is written into the DNA of every Indian, a sport we just love to play.How is this relevant to our discussion? I have cried myself hoarse to drive home the point that technology shouldn't merely transfer offline processes online. After all, there is so much more that technology can do; so much more functionality that can be provided.Now I am talking about the opposite. I am advocating that e-commerce players adapt to consumer's existing buying behavior, instead of attempting to teach them new tricks. In plain and simple terms, I am talking about an e-commerce site where consumers can bargain.Indians Love A Good BargainAlthough large-format retail is attempting to change that, the fact remains that Indian customers love bargaining with retailers. Contrast this with the American customer, who rarely bargains. They do probably only at a used-car dealership, a pawn shop or the flea market.The Indian obsession with bargaining goes beyond making sure one gets 'value for money'. It actually makes the purchase process more fulfilling. Anyone who has ever visited the market to buy fresh fruit and vegetables or fish will have to agree. Although large-format retailers have made inroads into the wallets of the Indian customer for branded goods, they are struggling to make a dent in fresh fruit and vegetables. According to my neighbour, "Fruit and vegetables from large grocery stores are just not as tasty." However, I am secretly convinced that this 'lack of taste' arises from her lack of ability to bargain at large grocery stores rather than their 'tasteless' produce!Lessons An E-Commerce Player Can Learn From The Bargaining HabitIt's been a while since I worked on a large-scale software implementation project. But I am sure that incorporating real-time bargaining in an e-commerce platform should not be too difficult.Yes, A Real-Time Bargaining PlatformMake sure you understand what I mean. I am not talking about a low-priced e-commerce outlet. I am not talking about a group discount site, where you get great deals when buying as a group. I am not talking about a coupon site that allows you to get discounts. I am not even talking about a 'name your price' bidding site, where you bid low in the hope that a few days later, your price is accepted.I am talking about replicating the real-world experience of bargaining in real time. This would require the e-commerce website to engage the customer in some kind of to-and-fro interaction. I am talking about a site where the customer would get the pleasure of making the system sweat a bit.Why A Bargaining Platform Just Might WorkWhen I first visited auction websites, I was met with 'deal frenzy'. Here, sometimes, people are so caught up in 'winning' the auction that are prepared to pay far more than they would otherwise have considered reasonable. Over time, I realised that I was not alone in catching the auction fever. Clearly, the purchase process influences the customer's interest in making the purchase – and the price they are willing to pay.This Could Be The Elusive Differentiator for Your SiteI am not the only e-commerce enthusiast who rues the fact that it is impossible to stand out. Identical shopping carts, product pages and feature-listings leave room only for pricing and branding to be differentiators. This is where coming up with an alternative purchase process could prove to be a great differentiator.The author, Ajeet Khurana, mentors start-ups. An angel investor, trainer, author, entrepreneur and digital marketer, Khurana is a member of the screening committee of Mumbai Angels, one of India's oldest angel networks. In addition, he is a technology enthusiast and runs a technology blog called TechnoZeast.com. He is on the boards of Carve Niche Technologies and Rolocule Games. You can reach him on LinkedIn and Twitter.You can send your feedback on smementor@moneycontrol.com or simply post comments below Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
