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!