Flipkart had announced their special privilege subscription service – Flipkart First – last month which promised to offer it’s subscribers exclusive benefits and access to priority service. We had expected the service to be priced between Rs. 750 to Rs. 1000.
However, Flipkart has pleasantly surprised all by offering “Flipkart First” service quite competitively at Rs. 500. With that kind of pricing even some of the moderate buyers of Flipkart will be tempted to go for it.
While there was no official announcement, if you visit Flipkart First site, the price is clearly mentioned.
While subscribing to the service, buyers need to keep in mind that benefits of “Flipkart First” are available only on products listed by WS-Retail. Luckily, majority of products listed are from them.
What Do you Get If You Subscribe to Flipkart First?
The biggest benefit that this subscription will bring you will be free shipping on all your orders (from WS-Retail) irrespective of the order value. There is no minimum purchase price. Generally for orders below Rs. 500, there is a charge of Rs. 40.
Secondly, all the orders will be delivered to buyers within a day. Currently their In-a-day service costs Rs. 90, however for Flipkart First subscribers can avail it completely free of cost.
Flipkart is also offering a same day delivery service at discounted price of Rs. 70, which is currently available for a price of Rs. 140.
Apart from shipping cost savings, Flipkart First subscribers will get priority customer service with minimum of wait time. And, this service will be available 24X7
Why Has Flipkart Priced The Service Low?
This is quite a smart strategy by Flipkart. Even though Flipkart First service is priced quite low, they stand to benefit much more indirectly.
Given the price, even moderate Flipkart buyers will be inclined to go for this service. And to cover the charges paid for this service, they will incrementally buy more from Flipkart rather than going to other sites. Remember, they are getting free in-a-day delivery guarantee. That is quite enticing.
So, even if the product price is marginally lower on other ecommerce sites, Flipkart First subscribers will prefer buying it on Flipkart rather than going anywhere else!
Secondly, on an average a buyer will need to make atleast 5-8 orders yearly to cover the costs. Flipkart has obviously done their calculations and they know that even at Rs. 500, this service is going to be profitable.
What do you think? Will you go for the service at Rs. 500?
[Hat Tip: Sai Kumar]
[…] has pleasantly surprised all by offering “Flipkart First” service quite competitively at Rs. 500. With that kind of pricing even some of the moderate buyers of Flipkart will be tempted to go for […]
Flipkart pricing is always higher than amazon and snapdeal now a days. So yes their Premium service is priced smartly.