Every year, India’s festive season kicks off with online shopping giants like Flipkart (owned by Walmart) and Amazon launching mega sales: Big Billion Days and the Great Indian Festival. These week long shopping carnivals promise huge discounts, bank offers, and irresistible deals.

But behind the attractive banners and influencer campaigns lies a deeper financial reality. Are customers truly saving, or are these sales a profit goldmine for platforms, sellers, and marketers?

Big Billion Days: A Big Theft or Big Savings?

Consumer Savings: Reality or Illusion?

At first glance, it seems like a shopper’s paradise 50% off on smartphones, “buy 1 get 1” fashion deals, and exclusive launches. But:

Prices are often inflated before the sale, then “discounted” to normal levels.

Some deals include bundled or older products under the guise of exclusive offers.

“Out of stock” tricks are used to create artificial scarcity and urgency.

Pro Tip: Use price tracker tools or Chrome extensions to verify if a deal is genuinely discounted.

So, while some real savings exist, the average consumer often saves less than they think. The illusion of discounting is a marketing psychology game.

How E-Commerce Platforms Make Money

Here’s where things get interesting. While shoppers rush for deals, platforms rake in money from multiple streams:

1. Seller Advertising & Promotions

Brands pay to appear in prime banner spots, exclusive deals, and search rankings

2. Commission on Sales

Platforms charge sellers a percentage fee on every transaction.

3. Logistics and Warehousing Charges

Flipkart and Amazon earn from packaging, warehousing (Fulfilled by Amazon / Flipkart), and fast delivery charges.

4. Financial Partnerships

Platforms partner with banks and fintech services offering EMI options and instant discounts — and they earn commissions on these too.

Result: Whether or not you buy something, the platform is already profiting from seller fees, ads, and affiliate earnings.

The Tax Angle: Who’s Really Benefiting?

1. GST Compliance Issues

With millions of transactions happening in a short span, invoice mismatches and underreporting can occur. Some sellers manipulate bills to reduce GST liability.

2. Cashback & Promo Confusion

Many cashback offers aren’t reflected on the invoice, leading to complications in GST calculation is the tax applied on the full price or discounted price?

3. ITC Leakage (Input Tax Credit)

If platforms or sellers issue incorrect credit notes or use shell billing entities, the government loses tax revenue.

India’s GST Council and tax authorities have increased digital audits during sale seasons but loopholes still exist, especially with third-party sellers.

Conclusion: Theft, Saving, or Something Else?

Buyers: Can save, if they shop smart and verify prices.

Platforms: Undoubtedly win big via fees, ads, logistics, and fintech.

Government: Faces challenges in ensuring tax compliance during high-velocity sales.

In reality, Big Billion Days are less about consumer welfare and more about a finely tuned ecosystem of profit-making, driven by data, psychology, and massive scale.

Final Takeaway

Next time you shop during the Big Billion Days, ask yourself:

Am I really saving or just participating in someone else’s big payday?