The dark side of India’s Big Billion Days and Great Indian Festival

Who really pays for the discounts?

Nishani.in · Indian e-commerce investigation · 9 October 2026

Every year, millions of Indians wait for Flipkart’s Big Billion Days and Amazon’s Great Indian Festival. Smartphones that once seemed unaffordable suddenly appear within reach. Electronics, fashion, appliances and household products are advertised with enormous discounts, bank offers, exchange bonuses and no-cost EMIs.

But one question deserves more attention than the advertisements get: if sellers are already operating on thin margins, who is paying for all these discounts?

Does Amazon or Flipkart absorb the loss? Are manufacturers funding the offers? Are small sellers being squeezed? Are some products overpriced before the sale? And does a cheap product necessarily mean a fake or Chinese-made product?

The answers are more complicated than either platform’s advertising suggests.

As of 9 October 2026, both sales are live in India. Flipkart’s Big Billion Days general-access sale began on 9 October, following early access for eligible customers on 8 October. Amazon’s Great Indian Festival opened to all customers on 8 October.

This investigation looks behind the discounts, the seller economics, the complaints and the business model that makes India’s biggest online shopping festivals possible.

1. What is happening in the 2026 sales right now?

Amazon Great Indian Festival 2026

Live since 8 October

Amazon advertises discounts of up to 80% in selected categories, a 10% instant discount on eligible SBI cards and additional benefits for Prime members. These headline discounts are category-specific, not a flat reduction on every product.

Flipkart Big Billion Days 2026

Live since 9 October

Flipkart says the 13th edition features more than 150 million products and over 60% more transacting sellers than the previous year. It has also announced zero commission across all price points for fashion, bringing more sellers onto the platform.

There is an important distinction between a platform’s announcement and independently verified results. The number of participating sellers, product listings, advertised discounts and jobs created are company-reported figures. They do not establish how much profit individual sellers make.

The broader industry outlook is also interesting. A Financial Express report published on 9 October estimates that India’s online festive sales could reach ₹1.5–1.55 lakh crore in 2026, up 25–29%. However, rising product costs and a more price-conscious customer base are putting pressure on discounts. The report suggests growth may come more from sales volume and affordable products than from the exceptionally deep discounts of previous years.

In other words, these platforms are competing for enormous amounts of spending, but that does not mean everyone involved is making enormous profits.

2. The secret behind a 50%, 70% or even 80% discount

The biggest misconception is that the seller must personally absorb the entire discount. There are several possible sources of funding, and different products can have completely different arrangements.

1. The manufacturer funds the discount

A smartphone or television brand may contribute promotional money, offer a special festive price, or supply stock at a lower promotional cost. The seller can then sell at a reduced price without absorbing the full reduction.

2. The seller accepts a lower margin

A seller may sacrifice part or all of its profit to move inventory, attract new customers, increase sales volume or free up cash. Some may deliberately sell a product at a loss as a marketing expense.

3. The bank funds part of the offer

Instant card discounts may be funded by the bank, the merchant, the platform or a combination, depending on the agreement. Cashback and EMI offers also have their own economics. The advertised price alone does not tell you who paid for the discount.

4. The platform invests in customer acquisition

Amazon or Flipkart may support specific promotions, negotiate funding with brands, or accept a lower return from a campaign to attract shoppers. That can be commercially rational if it generates repeat purchases and strengthens the marketplace.

5. The product itself has enough margin

A product manufactured at a low cost and sold through an efficient supply chain may support a large percentage discount while remaining profitable. A 70% discount on one product is not financially equivalent to a 70% discount on another.

The actual funding arrangement for a particular listing is generally not visible to the customer. It would be incorrect to assume that every deal is subsidised by Amazon or Flipkart, or that every seller is selling at a loss.

A simple example: who pays for the discount?

Imagine a product with a reference price of ₹10,000 and a festive selling price of ₹6,000.

That ₹4,000 reduction does not automatically become the seller’s loss. The reference price may not be the seller’s purchase cost, and promotional funding may be shared.

For example, suppose the seller’s acquisition cost is ₹4,800, and a manufacturer provides ₹500 per unit in promotional support. If the seller receives the ₹6,000 sale proceeds plus that support, the gross contribution before platform fees and fulfilment is ₹1,700.

But if the seller bought the same product for ₹5,800 and receives no promotional support, the gross contribution is only ₹200 before fees. The same customer-facing discount can therefore produce radically different outcomes.

That is the first secret: the percentage discount tells you what the customer appears to save, not what the seller loses.

3. Are the original prices inflated before the sale?

Sometimes, a product’s displayed discount can be misleading. But we must distinguish three different things:

• A genuine discount: the price is reduced from a meaningful earlier selling price.
• A large discount on an inflated reference price: the percentage looks impressive, but the actual saving against the usual street price is much smaller.
• A genuinely low promotional price: a manufacturer or seller accepts a lower margin to drive volume or clear inventory.

For example, a product advertised as ₹10,000 with a 50% discount costs ₹5,000. If the same product was routinely selling for ₹5,500 before the event, the real saving against its previous market price is only ₹500, or around 9.1%.

The most useful comparison is therefore not the crossed-out price. It is the product’s recent price history, the price offered by competing retailers, and the final amount you actually pay.

For this year’s sales, there is an additional warning. Financial Express reported that average laptop prices were up 41% year-on-year, meaning a discount of approximately 29% would be needed just to match the previous year’s festive price, based on the comparison in its report.

A product can carry a large advertised discount and still be no cheaper than last year.

4. How Amazon and Flipkart make money if they offer such low prices

The answer lies in understanding what these companies actually sell.

They are not simply shops buying every product and reselling it at a profit. They operate large marketplaces where independent sellers list products and customers place orders. Their revenue can come from marketplace fees, advertising, fulfilment and logistics services, subscriptions and other services. The exact revenue mix differs by business and entity.

Here is how the model works.

Millions of customers

Customers visit for deals, selection and convenience.

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Marketplace attracts sellers and brands

Sellers list products and offer promotions, while brands make their inventory available.

↓

Orders, advertising and fulfilment

The marketplace earns through seller fees, advertising, storage, delivery and other services.

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Potential recurring revenue

Repeat purchases, more sellers and greater marketplace activity can generate further revenue.

Revenue does not equal profit

Consider a hypothetical transaction worth ₹5,000. If a marketplace earns ₹400 in seller fees and related services, that ₹400 is not necessarily its profit. Payment costs, logistics subsidies, customer support, technology, returns, fraud prevention, advertising and other operating expenses can consume part of that revenue.

The platform may also invest in discounts or customer acquisition. It can make money from the broader ecosystem while individual sellers struggle, but it can also incur losses on individual campaigns or operations.

There are three distinct questions:

1. Does the marketplace earn revenue from the transaction?
2. Does the marketplace make a profit after allocating its costs?
3. Does the seller make a profit after paying their costs?

The answer to one does not determine the answer to the others.

The long-term advantage: scale

A large platform can spread technology and infrastructure costs across millions of orders. It can negotiate with major brands, optimise delivery networks, sell advertising to merchants and encourage customers to return for future purchases.

A major festival also creates urgency. Customers who arrive for a smartphone deal may buy clothing, kitchen products or other items. Some may return after the festival and buy at normal prices.

This is why a platform might rationally invest heavily in a sale even when the economics of certain individual offers are weak.

Are Amazon and Flipkart themselves profitable in India?

This question needs careful handling because the companies operate through multiple legal entities and business units.

Amazon’s global parent, Amazon.com, Inc., and Walmart, the parent of Flipkart, report financial results at group level. Those results should not be confused with the profit or loss of the Indian marketplace business.

To establish whether the Indian operations are profitable, one must examine the relevant Indian entities’ filed accounts, their revenues, expenses, intercompany transactions and the particular financial year. Even a profitable Indian entity would not prove that every sale campaign is profitable.

The honest conclusion: large marketplaces have several ways to earn revenue and build long-term value. But the mere existence of a huge sale is not evidence that the platform, every seller or every individual product is profitable.

5. What do small sellers say about these sales?

This is where the polished festive advertising meets the reality of running a business.

Seller discussions on Amazon India’s own Seller Forums contain complaints about declining orders during festival events, advertising expenses, deal visibility and competition with heavily discounted listings. These are individual seller reports, not an audited survey of every seller, but they provide a useful view of the problems that some merchants experience.

One seller reported that daily orders fell from around 40–50 to 5–10 during a Great Indian Festival event. Other sellers in the same discussion described similar declines and difficulty competing with large discounts.

Another seller discussion complained that participating in frequent sale events was difficult for retailers already working with thin margins. The seller argued that products without promotional deals received less visibility. A separate discussion raised concerns about advertising costs consuming a substantial share of the seller’s expenses.

These comments should not be read as proof that Amazon deliberately reduces the visibility of every non-participating seller. Search ranking and advertising placement can depend on multiple factors, and forum posts cannot independently establish the platform’s intent.

But the underlying commercial concern is real: when customers are trained to wait for discounts, a seller who cannot afford to discount may lose sales even if the product is good and fairly priced.

The economics of a small seller

Imagine a small Indian clothing business selling a garment for ₹1,000.

This seller has ₹300 left before advertising, returns, damage, salaries, rent, taxes where applicable and other overheads.

Now suppose the seller reduces the price to ₹800 while all the other costs remain unchanged.

A 20% price reduction has cut the contribution from ₹300 to ₹100 — a 67% reduction.

Illustrative example only. Actual marketplace charges, shipping costs, taxes and return expenses vary by product, seller account and fulfilment method.

If this seller also spends ₹80 per order on advertising, the remaining contribution falls to ₹20. One return, damaged shipment or additional charge could wipe it out.

This is why an increase in order count is not necessarily an increase in profit.

Why sellers may still participate

Small sellers are not a uniform group. Some participate because:

• They need to clear ageing inventory before new stock arrives.
• Their margins can accommodate the discount.
• They want to acquire customers and generate reviews.
• They expect sufficient volume to compensate for lower contribution per order.
• They have access to promotional funding or lower acquisition costs.
• They fear losing sales to competitors who do participate.

Other sellers avoid deep discounts because their products have low margins, high manufacturing costs or limited stock.

A festival can therefore be an excellent growth opportunity for one business and an expensive distraction for another.

6. Do Amazon and Flipkart force sellers to participate?

The word force needs to be examined carefully. There is a difference between a legal obligation to participate, a contractual charge, a commercial incentive and pressure created by the way a marketplace operates.

Flipkart’s controversial ₹5 festive-sale fee

There is a documented example of a policy that angered sellers.

In September 2022, The Economic Times reported that Flipkart communicated a ₹5 festive-period fee to certain sellers who did not participate in Big Billion Days offers. The company described it as a nominal one-time fee, while some sellers said they understood the communication to mean a per-order charge during the early sale period. The fee could be waived for sellers meeting specified participation criteria.

This is important because it shows that seller participation has, at least in a past documented instance, involved more than simply inviting merchants to offer a discount.

However, that 2022 report does not establish that Flipkart is charging the same fee in 2026. Nor does it prove that all sellers were compelled to participate.

The more subtle pressure: visibility and competition

A seller can technically decline an offer and still face a difficult commercial choice.

• Competitors may advertise lower prices.
• Promotional badges can make competing listings more noticeable.
• Deal placements can attract customers who are specifically searching for discounts.
• Sponsored advertising may be needed to compete for visibility.
• Unsold inventory ties up cash that could be used elsewhere.

The result can be a form of commercial pressure even without a formal requirement to join the sale.

A seller’s real dilemma is often: Can I afford to participate, and can I afford not to?

What about Amazon?

Amazon promotes its sale events to sellers and provides tools intended to help merchants prepare inventory, improve listings and increase festive sales. Its seller-event guidance also encourages sellers to use personalised recommendations and calculate profitability before participating.

Seller discussions nevertheless show concerns about deal eligibility, advertising expenditure and visibility. Those reports are evidence of seller dissatisfaction, not proof that Amazon has a universal policy of penalising sellers who refuse discounts.

The distinction matters: sellers should examine the actual event terms, account-specific notifications, fee schedules and consequences before deciding whether to participate.

7. Are big brands and preferred sellers given an unfair advantage?

This is not merely a social-media rumour. It has been the subject of significant competition-law scrutiny in India.

In September 2024, Reuters reported on findings contained in confidential Competition Commission of India investigation reports concerning Amazon and Flipkart. The reports alleged preferential treatment for certain sellers, favourable services and listing positions, and deep discounting that disadvantaged competing merchants. The investigation reports identified six preferred sellers for Amazon and 33 for Flipkart.

The allegations raise an important question: what happens when a marketplace operator also controls the environment in which sellers compete?

Imagine two merchants selling comparable products:

• Seller A has stronger funding, cheaper logistics, greater advertising capacity and access to promotional support.
• Seller B has limited cash, pays ordinary service charges and cannot sustain a prolonged price war.

Even if both sellers are technically allowed to list products, they may not have the same ability to compete.

However, it is essential to distinguish investigative findings and allegations from a final legal determination. The existence of an investigation does not mean every discounted listing is unfair or that every small seller has been disadvantaged.

The wider issue is whether marketplace rules, access to services and ranking mechanisms create a level playing field for sellers.

A further development appeared in 2026: Mint reported on a new complaint alleging that Flipkart’s group-level financial and operational advantages created a recurring subsidy pool benefiting a limited number of preferred sellers. These were allegations in a complaint, not proof that the alleged mechanism had been established as fact.

For Indian sellers, the lesson is to examine not just the advertised commission but the entire cost and visibility structure: promotional funding, fulfilment, advertising, seller eligibility, returns and any contractual conditions attached to a sale.

8. Are the products fake, duplicate or cheap Chinese imports?

No blanket conclusion is justified. There are several distinct issues that should not be mixed together.

Genuine branded products

Manufacturers may offer special prices on genuine smartphones, televisions, appliances and other products. A discount alone does not indicate that a product is fake.

Low-cost or unbranded products

Products can be cheap because of lower specifications, simpler packaging, limited after-sales service, lower manufacturing costs or a different business model. Low cost does not automatically mean low quality, although buyers should examine specifications and warranties.

Imported goods, including Chinese-made products

China is a major manufacturing source for many categories of consumer goods. Some imported products compete on price because of scale and supply-chain efficiency. But neither the country of origin nor the sale price proves that a product is counterfeit.

Counterfeit, misrepresented or substandard products

These are genuine consumer-protection concerns. A counterfeit imitates a brand without authorisation; a misrepresented product may claim features or materials it does not possess. Such problems require product-specific evidence, not assumptions about the entire sale.

Why can a cheap imported product undercut an Indian seller?

Suppose a merchant imports a generic accessory in large quantities. Its purchase cost may be substantially lower than that of a small Indian manufacturer producing a comparable-looking item in limited quantities.

The importer may also have lower packaging costs, more efficient production or a different quality specification.

That does not automatically make the imported product better or worse. The relevant comparison is whether the products offer comparable materials, performance, safety, durability and after-sales support.

What should buyers check?

• The identity and reputation of the seller.
• The manufacturer’s details, country of origin and applicable declarations.
• Whether the product is sold as new, refurbished or renewed.
• Warranty coverage and the availability of service centres.
• Recent reviews that describe actual use rather than generic praise.
• Return conditions, invoice details and the product’s specifications.
• Whether the claimed discount is genuine compared with recent prices.

For regulated product categories, applicable certification and labelling requirements should also be checked.

The key point: low prices can come from legitimate manufacturing efficiencies, promotional funding or lower margins. Counterfeiting and misleading product claims are separate problems. It would be inaccurate to label the sales as a whole a market for fake products or cheap Chinese goods.

9. Who actually benefits from these sales?

There is no single winner. The outcome depends on the product, the seller’s cost structure and the customer’s buying behaviour.

Why a large brand may win while a small seller loses

A large brand might negotiate favourable procurement terms, receive manufacturer-funded promotions and spread advertising expenses across a large sales volume. A small seller buying materials in smaller quantities may not have those advantages.

The large brand can therefore afford a lower selling price without necessarily losing money.

But the reverse can also happen: a small seller with a distinctive product, loyal customers and low overheads may be profitable without participating in a massive discount event, while a large seller with expensive inventory and high marketing costs may struggle.

Scale helps, but it is not a guarantee of profitability.

10. Is it profitable for sellers to participate?

The correct measure is not gross sales. It is contribution and, ultimately, net profit.

Consider three hypothetical businesses participating in a sale.

Seller A: High-margin product

A product with a low acquisition cost and sufficient margin to absorb the discount.

The seller may increase volume, attract customers and still earn a positive contribution per order.

Seller B: Thin-margin product

A product with substantial shipping, marketplace and advertising expenses.

More orders can produce less profit, or even a loss, if the discount exceeds the available margin.

Seller C: Inventory-clearance sale

A seller discounting older inventory to recover cash.

Selling below the original purchase cost may still be rational if the alternative is holding stock that will lose value or incur additional storage costs.

A break-even example for sellers

Imagine a seller with the following figures:

At the regular selling price of ₹1,000, the contribution is ₹240 per order.

Now apply a 20% discount.

A 20% discount reduces the contribution from ₹240 to ₹40 — a reduction of approximately 83%.

This is before fixed overheads, applicable tax effects and any costs not included in the calculation.

If the contribution turns negative, every additional order increases the loss unless another funding source offsets the gap.

A seller should calculate this before agreeing to an offer, not after the sale has ended.

11. What does this mean for an Indian handloom business?

For a brand selling genuine handloom products, the economics can be different from those of a smartphone retailer.

Handloom production involves skilled labour, time-intensive processes, limited production capacity and potentially higher unit costs. A handwoven garment cannot always be manufactured at the same price as a mass-produced garment, and a genuine handcrafted product should not have to compete solely on the size of its discount.

For Handlooom.com and similar businesses, there are several practical implications.

First, avoid competing on price alone. Compete on verified origin, craftsmanship, natural fibres, traceability, durability and the identity of the artisan or producer.

Second, distinguish genuine savings from permanent discounting. A well-planned festive offer on selected products may attract new customers. Repeatedly discounting every product can train customers to avoid buying at the regular price.

Third, calculate contribution by product. A product that sells well may still be unprofitable after packaging, shipping, returns, advertising and marketplace fees.

Fourth, use marketplaces strategically. They can provide discovery and reach, but a business should not depend entirely on one platform’s promotional calendar or ranking system.

Finally, make authenticity verifiable. Product provenance, accurate fibre descriptions, production details and credible traceability can create differentiation that a generic low-cost product cannot automatically replicate.

For an authentic handloom brand, the objective should be to attract customers who value what the product genuinely offers, not simply to win a race to the lowest price.

12. The final verdict: is the whole festival a win or a loss?

The Big Billion Days and Great Indian Festival are neither inherently fraudulent nor guaranteed money-making opportunities for everyone.

They are large-scale commercial events designed to stimulate demand, acquire customers, move inventory and increase transactions. Their success must be assessed separately at the platform, seller, manufacturer and customer levels.

The central truths are:

• The customer may save money, but only a comparison with recent market prices can establish the real saving.
• The manufacturer or bank may fund part of a discount, depending on the commercial agreement.
• The seller may earn more through volume, but can also lose money on each additional order.
• The platform may benefit from greater marketplace activity, without necessarily making a profit on every transaction or campaign.
• Large sellers may have structural advantages, but not every large seller is profitable and not every small seller is disadvantaged.
• Fake products and misleading listings are real concerns, but cheap prices and imported products are not proof of counterfeiting.
• Participation can be commercially pressured, even when it is not universally mandatory. Sellers need to examine actual terms and their own economics.

The biggest secret is not that someone must always be losing money behind every low price. It is that the advertised discount hides a much more complicated set of costs, funding arrangements and commercial objectives.

A shopper sees 70% off. A seller sees the cost of inventory, marketplace charges, shipping, returns and advertising. A manufacturer sees production volume and market share. A platform sees customer acquisition, transactions and the long-term value of its marketplace.

They are all looking at the same sale — but they are not measuring success in the same way.

For customers, the smartest strategy is to compare prices and buy what they genuinely need. For sellers, it is to calculate profitability before participating. And for anyone evaluating the e-commerce industry, it is essential to look beyond gross sales and headline discounts to understand who is actually earning money.

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