Flipkart launches Assured to take on Amazon Prime

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India’s largest e-commerce marketplace Flipkart has launched ‘Assured’ its very own customer loyalty service that promises speedier deliveries and better customer experience to take on Amazon Prime.

While the service will be available to all customers for no added cost, it lacks essential features that will lock customers onto the Flipkart platform. Unlike Prime, Flipkart’s offering isn’t a subscription-based service. It’s just a way for the company to mark quality listings on its platform.

“Flipkart Assured is more than a badge or a sticker. A unique quality assurance from Flipkart, it is strengthened by a comprehensive suite of well-honed capabilities across the business value chain,” said Flipkart in a blog post.

The company says all Flipkart Assured listings will be shipped within two-four days for products costing above Rs 500. Amazon Prime, on the other hand, offers free shipping for all Prime products to members within a timeline of one-two days. Prime subscribers will also have access to original video streaming content for a fee of Rs 999 per year.

Back in 2014, Flipkart had unveiled a Prime competitor called Flipkart First, where the company charged a subscription of Rs 500 per year to assure users of faster deliveries. A year later, however, the service went under the radar with few takers.

While it’s too early to comment on the success of Prime in India, the model has worked the world over for Amazon. In the US, it is estimated that half of all households have at least one member with a Prime membership.

Moreover, Prime subscribers on average spend nearly double ($1200) that of non-subscribers ($600).

“Flipkart Assured is not an exclusive service but an inclusive one, which means that anyone and everyone who shops on Flipkart can avail of the Flipkart Assured guarantee. No subscriptions, no exclusive club memberships,” said the company.

Flipkart Assured will allow the company to direct users towards more reliable sellers as it looks to boost its customer satisfaction score and try to compete with Amazon over service quality. Also, with over 90,000 sellers on its platform, Assured will also allow Flipkart to direct more sales to a fewer number of sellers as it looks to build a similar seller model to Alibaba.

Flipkart launches Assured to take on Amazon Prime | Business Standard News
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