In India, the e-commerce market is dominated by Flipkart and Amazon. Both online retailers compete with each other to offer great discounts and quick deliveries in order to enhance the user experience and make it convenient for consumers. However, the Prime membership has helped Amazon serve a larger audience providing early access to offers and free deliveries among other benefits.
Now, it looks like Flipkart is closely following the heels of Amazon by bringing its own subscription service. Flipkart has announced that it will launch the 'Flipkart Plus' service on August 15.
What is Flipkart Plus?
Flipkart Plus is a program aimed at reaching a wider consumer base across the country. It includes benefits such as no-fee membership and a wide range of rewards for consumers. The program assures a superior experience for users all over the country with free and fast delivery, early access to offers during sales and an improved customer support experience.
Furthermore, Flipkart customers will begin earning 'Plus Coins' with each order they place. These coins can be used to unlock multiple benefits including content, travel and shopping. The firm will offer rewards on platforms such as Zomato, Hotstar, Makemytrip and Café Coffee Day.
This is Flipkart's second effort after the Flipkart First programme that was launched earlier but wasn't pushed aggressively. It shows the company's effort in improving the customer loyalty and increase the spending on its platform.
An Amazon Prime rival
It goes without saying that Flipkart Plus will compete against the likes of Amazon Prime. The Rs. 999 annual subscription programme of the latter has helped the online retailer make a difference. It comprises 30% of the total orders on the portal. It has been popular in the country, especially among people who spend a lot on the e-commerce portals.
With Flipkart Plus, the e-commerce marketplace can reduce the increasing dominance of Amazon in the urban areas. If the service becomes popular, it will help the retailer, a major stake of which will be acquired by Walmart. With the entry of Walmart as a controlling shareholder, Flipkart is expected to get long-term funds to compete with its rival - Amazon and focus on expanding sales.
Given that Amazon Prime also offers video and audio content, we can expect the Flipkart programme to also come up with such services in the future. However, we will get to know more only on August 15, when this service is announced.