Flipkart mulling premium shipping service? Will you pay Rs. 80 extra for next day delivery?

It’s introspection time for ecommerce companies in India and the poster boy, , it seems is mulling a premium shipping service*.

flipkart_premium_service

The company recently shutdown its Flyte service (for digital music) and is also rumored to be launching its own payment gateway, in order to maximize margins.

Plus, Flipkart in the past has been upping the bar on minimum amount for free shipping in order to cut short its thin margin. Obviously, delivery is a fairly significant cost of the entire process and doing it as well and ‘delight’fully as Flipkart have managed thus far must eat into the margins in an already competitive space quite a bit.

Post the biggest pivot ever, i.e. move from inventory led to marketplace model, the company needs to have tighter control on its logistics and while the above pic is of a WebEngage widget (most probably during  checkout), the company is probably looking to monetize the IP it has built over the last few years, i.e. logistics capabilities.

Open Questions

Flipkart has been known for its superb delivery and has often surprised customers with its sweet ‘under-promise-over-delivery’ model. For Flipkart’s regular customers, next day delivery is probably not a big deal as that’s something that they might just expect, owing to service quality benchmark Flipkart has set.

There’s also the question of price points at which the premium service will work. 80/- does seem fairly high for most products that are sold online today. Of course, they might be looking at a differential price for various product categories.

[* : We haven’t confirmed this from Flipkart yet and going thru’ checkout process didn’t show the feedback widget to us. Nevertheless, the post is about Flipkart finding its IP/mojo and monetize that. Image credit]

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