Logistics is one of the crucial factor for an e-commerce business and companies are spending a lot of money on logistics, which impacts the revenues. To reduce logistics costs, Flipkart is reportedly adopting Jet.com’s model. The e-commerce startup will offer discount to customers who opt to get multiple products in a single box.
The model was introduced by Walmart-owned Jet.com with its Smart Cart service. It encourages customers to order multiple products that can be shipped in a single box.
As per sources aware of the matter, cited by ETTech, Flipkart could roll out this service later this month. With the introduction of such services, the company will be able to save money on multiple shipping charges.
A person familiar with the development, said to ET:
Courier price slab changes with every 500 g. For example, a pair of shoes typically comes in a 1.5 kg box volumetrically but the box is partially empty as it only occupies 1 kilogram and one hundred grams volumetric so you still end up paying cost of the 400 grams. So Flipkart will suggest consumers, say a T-shirt or toiletries that can be included to complete the 1.5 kg.
Walmart acquired Jet.com for around $3.3 billion in order to strengthen its e-commerce unit to taken on the global e-commerce giant, Amazon. The company is also said to be in talks with Flipkart to invest in the homegrown startup for a minority stake. Its not clear whether the introduction of Jet.com’s pricing model has anything to do with the said investment.
The Seattle-based e-commerce platform – Amazon is also slowly taking the pole position in the Indian market. Flipkart is now coming up with many new offerings in order to win back its lost market share. During the festive season sales, Flipkart reported sales of 15.5 million units, while Amazon reported sales of 15 million units.
Following Amazon, Flipkart has also introduced its own private label brand – Flipkart Smart Buy in order to improve its margins. The private label is said to be the first among several other private labels which the company will be launching in coming six months.
