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Flipkart takes on Amazon Prime with 'Flipkart Assured'

Flipkart takes on Amazon Prime with 'Flipkart Assured'

Author | Sarmistha Neogy | Wednesday, Aug 24,2016 8:06 AM

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Flipkart takes on Amazon Prime with 'Flipkart Assured'

Flipkart has recently introduced ‘Flipkart Assured’ or ‘F-Assured’, a service to ensure speedy delivery of products to its customers. This comes just few weeks after Amazon launched their subscription service ‘Amazon Prime’ service in India. In order to promote their latest offering, the brand has got back their popular endorsers - kids in the commercials. There is an extensive marketing plan, which includes full page advertisements and two TVCs conceptualised by Lowe Lintas running at the moment.

What is Flipkart Assured?

The products under Flipkart Assured come with ‘Flipkart Assured’ badge and will go through six levels of quality checks and have an accelerated delivery process to the customers. These products will be delivered to the customers across India within two days. Also there is free shipping for orders above Rs 500. According to reports, F-Assured ropes in prospective young customers who are yet to start shopping online.

Also there is a difference between‘Flipkart Advantage’and‘Flipkart Assured’ services. The website mentions that while 'Flipkart Advantage' was a tag for all products from sellers who used the brand’s partner warehouse services, the 'Flipkart Assured' badge is given to select items basis their performance on product quality attributes and availability for faster delivery.

How is ‘Flipkart Assured’ different from ‘Amazon Prime’?

Amazon Prime ships all the orders eligible under the 'Prime' service for free, with a one- or two-day delivery assurance. It is right now available at an introductory pricing of Rs 499, which is a discount of Rs 500 over the listed pricing of Rs 999 for the service.

On the other hand, Flipkart Assured will give free delivery for orders above Rs 500. It doesn’t require any paid membership.

‘Flipkart Assured’ is a strategy which the brand has taken in order to attract the price-conscious Indian consumers and especially at a time, when Amazon Prime has already become a hit in the market. However, it is not the brand’s first attempt to woo the consumers with their programmes; Flipkart had released ‘Flipkart First’ in 2014, which was an annual paid subscription service that offered consumers exclusive benefits and priority services. The subscription fee for which is Rs 500 a year.

According to latest reports, Flipkart may be on the verge of losing the top slot to Amazon India after the company reported gross sales or gross merchandise value (GMV) of less than Rs 2,000 crore in July. Whereas, Amazon's gross sales were up above Rs 2,000 crore in July. This is the first time in three years, that Amazon India may have more gross sales than Flipkart.

In a recent town hall meeting, Sachin Bansal also reiterated the need for the company to compete with Amazon, which has overtaken Snapdeal as the second biggest e-retailer in the country and is closing in on Flipkart. Amazon has announced a further investment of $3 billion in India spread over the next few years; Flipkart has seen a downslide in investor sentiment. However, this has not stopped the company’s ambitions as it recently acquired beleaguered fashion e-retailer Jabong for an amount rumoured to be around $70 million in July. 

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