Launched in October 2023, it is Flipkart’s third attempt to curb Amazon Prime’s dominance and bring more paid members to its fold
After the initial hype, Flipkart VIP has quietly faded away, and it is no longer accessible on Flipkart's website or app
Despite its efforts to provide unique and differentiated offerings, Flipkart VIP faces limitations in terms of services and pan-India availability
During the recently concluded Big Billion Days Sale, Walmart-owned ecommerce major Flipkart launched an annual membership programme – yet again. The announcement of Flipkart VIP was not a rarity, though. Over the years, it came up with a handful of premium memberships and loyalty programmes, but they failed to compete with its arch-rival, Amazon India, and its flagship, Amazon Prime. A look at the festive numbers puts Flipkart ahead in the competitive landscape. While the Amazon India site and app claimed 1.1 Bn visits, Flipkart claimed 1.4 Bn visits. Also, Flipkart Fashion played an important role in customer acquisition, bagging more than 44% of new users during TBBD.Flipkart VIP also ensures fast and free delivery, early access to lightning deals and discounts. Although it does not provide streaming services like Prime, it has a few unique benefits such as a Welcome Box with assorted products, the ability to cancel/reschedule domestic flights booked on Cleartrip for INR 1 (can be used only once during the membership period) and an additional 3% discount of up to INR 3K on Cleartrip hotel bookings.“Extending free and fast deliveries in Tier III+ locations is difficult, as it will increase logistics costs in the first place,” said an analyst from Gartner who did not want to be named. “Add to that is the average return rate that would further increase the cost. No wonder, Flipkart had initially offered return pickup within 48 hours in 4 cities – Delhi NCR, Bengaluru, Mumbai and Kolkata as part of VIP programme.
Flipkart First, Flipkart Plus and Flipkart Plus Premium came and went without much ado. This year, Flipkart VIP was clubbed with its biggest online event to create maximum impact. But can it trump Amazon Prime at long last?