Letsbuy Vs Flipkart


22-04-2012 |  nrupaldiffion |    Trends

The acquisition of Flipkart of Letsbuy (source) is now a old story. However we thought of pondering over this for some time and see how have things changed in terms of pricing in these two websites. It was a small analysis of 4 home appliances product that was offered by these two website and coming up with a quantitative analysis as to how and why they are differing from each other.

Even though they are being controlled by the same management and perhaps would have used their buying leverage to source things even cheaper (at least cheaper amongst the two). Are they giving out the benefit to end user They have not decided at this point of time. Smile

We also decided to check if they are offering any coupons to reduce the discounts (any or both).

Product 1: LG LSA5CR2A 1.5Ton (2 Star) Split Air Conditioner

Product URL Listing Price Coupon Value Total Cost Notes
Letsbuy.com 25,090 0 25090 Out of Stock
Flipkart.com 25,430 0 25430

Winner : Letsbuy

Price Difference = Rs 320

Product 2: LG LWA2CR1A 0.75 Ton (1Star) Window Air Conditioner

Product URL Listing Price Coupon Value Total Cost
Flipkart.com 14640 0 14640
Letsbuy.com 15745 0 15745

Winner : Flipkart

Price Difference = Rs 1105

Product 3: Samsung AS182SGD 1.5 Ton (2 Star) Split Air Conditioner

Product URL Listing Price Coupon Value Total Cost Notes
Letsbuy.com 25090 0 25090 Out of Stock
Flipkart.com 26030 0 26030

Winner : Letsbuy

Price Difference = Rs 940

Product 4: Samsung AS185BGC 1.5 Ton (5 Star) Split Air Conditioner

Product URL Listing Price Coupon Value Total Cost Notes
Letsbuy.com 34240 0 34240 Out of Stock
Flipkart.com 35380 0 35380

Winner : Letsbuy

Price Difference = Rs 1140

Deductions: Now considering that the products were picked up as random samples and 4 products are not sufficient data to give a verdict who is providing "Home Appliances" at cheaper rates, we cannot give a clear verdict on that.

However this analysis clearing brings into fold two issues

1) Products being sold at different rates by the same parent company in two different websites. The price difference is also considerable and would surely be a decider especially for Indian Consumer.

2) Unavailability of products in Letsbuy whereas the same is available through Flipkart.

While the first one is acceptable for ecommerce websites (they might different value proposition for each website and offerings as well Like expedited shipping or better packaging etc.) but seems a little difficult for the consumer to understand, given that communication regarding individual products or pricing strategy is not public knowledge.

In case of second one, when ecommerce website are dying for better conversion and one of your sister concerns(Letsbuy) is not having a product while you(Flipkart) have it and still let the buyer move to another website is a great concern. Perhaps better integration of system for both websites would lead to more sales.

Now a couple of months ago, Letsbuy and Flipkart would have been fighting to come up with the best price for each product. Now that they are together, should they still have a difference in price offerings!!

  • Is this good business or bad business ?
  • Are consumers (in large numbers) aware that Flipkart acquired Letsbuy and have expectations that they should sell with very similar pricing structure?
  • Will Letsbuy maintain its individual brand name and continue to exists or will it merge with parent ?
I leave you with some food for thought Smile