Flipkart looks to be threatened by Amazon’s Prime feature as the company is planning to launch its 3rd service based on similar concepts. What started in 2014 with Flipkart First, relaunched as Flipkart Assured in 2016, is now coming as Flipkart Plus, a brand-new loyalty program. The launch date is set to 15th August, and customers will earn points or coins with every purchase.
The main benefit of these coins is that customers will be able to unlock discounts along with free and faster deliveries. In addition, these coins will give several benefits at Flipkart’s partner platforms including Hotstar, Zomato, MakeMyTrip and Cafe Coffee Day.
A good fact about this feature is that unlike Amazon Prime, Flipkart isn’t charging anything as the upfront fees for joining Flipkart Plus.
Amazon Prime costs Rs. 999 a year and offers discounts and faster deliveries, along with a whole catalog of online video entertainment in the form of Amazon Prime Video. Flipkart currently has no such benefit and thus must turn to third-party merchants who can offer its customers discounts and offers.
Talking about this, Shoumyan Biswas, head of advertising, marketing at Flipkart said: “Every time a customer completes a purchase on our platform, the customer earns a certain amount of Plus points. As you shop more, you earn more Plus points. And with more Plus points, you unlock key rewards and benefits,”
“Flipkart Plus not just provides benefits which are on the platform, but outside the platform as well,” he added.
Flipkart First was available at Rs. 500 per year and had free shipping and faster deliveries. Flipkart Assured had no upfront fee but offered better quality checks with faster deliveries of products above Rs. 500.
Prime has helped Amazon to gain popularity in the competitive Indian market and now Amazon Prime Video is also contributing. Around 30% of orders on Amazon are now being placed through Amazon Prime. If Flipkart can take the benefit of its partner brands perfectly, it could end up as the biggest challenge for Amazon Prime.