Rediff.com launches coupon-based on-line shopping product

Nasdaq-listed Rediff.com on Tuesday launched a coupon-based on-line shopping product which works like newspaper classifieds, giving users localised ad content about merchants offering discounted rates.

"We will tie-up with high quality merchants on the local level and will offer discounts ranging from 30-60% on normal prices," Rediff''s Chairman and Chief Executive Ajit Balakrishnan told reporters.

Offers will be on only for a single day and a consumer will have to make an advance payment either electronically or by cash which will be picked-up by a Rediff representative from the doorstep.

"On payment, you will get a coupon which carries a distinct number and the customer pays the remaining amount to the merchant to execute the transaction," Balakrishnan said, adding initially it was being launched in 40 cities and has tied-up with over 700 merchants engaged in 70 product categories.

Rediff will get a percentage of the transaction as its commission, he said, without disclosing a minimum number on which the company will work.

Also, it will negotiate deals before they are put up on the website so that the buyer gets enticed. The merchant will not pay anything to Rediff for merely hosting the advertisement, he said.

Rediff is expecting up to 60% of business from Mumbai and Delhi, in tandem with Iinternet users, he said.

A host of websites like snapdeal.com give products similar to this currently but Balakrishnan said the real competition will be from newspaper classifieds, outdoor media companies and local cable channels.