wordpress blog stats
Connect with us

Hi, what are you looking for?

, , ,

Snapdeal launches free shipping for non cash-on-delivery orders

delivery-commerce-ecommerce

Snapdeal has launched Snapdeal Gold, a service which will let its users get free shipping, next day delivery and extended purchase protection much like Amazon Prime, which was launched in India last month and Flipkart First, which was launched in June 2014. The difference is that while Amazon and Flipkart charge Rs 500 for their respective services, Snapdeal Gold is free for users. Flipkart had launched same day delivery service for goods sold by WS-Retail in April 2014.

Snapdeal Gold is limited to digital payments (credit cards, debit cards, netbanking and mobile wallets), and not cash on delivery, and is for 5 million products of the 50 million that Snapdeal claims to have. There’s also an extended 14 day return period for Snapdeal Gold orders.

Last week, Snapdeal raised $21 million from Clouse SA, as a part of a previously announced $200 million funding tranche from February.

Snapdeal’s logistics rollout

Earlier this month, the company opened 6 logistics centres in Delhi-NCR, Lucknow, Hyderabad and Kolkata, claiming that 80% of its orders were shipped through its fulfilment centres. Snapdeal currently has 69 fulfilment centres across India and offers next day delivery in 104 cities. It has 300,000 sellers on its platform.

Advertisement. Scroll to continue reading.

Amazon Prime and fulfilment centres

– In February 2015, Amazon said that globally, Amazon Prime memberships had grown 53% year-on-year (YoY) in Q4 2014 and 50% YoY in the US. In the US, Amazon Prime comes bundled with Amazon Prime Instant Video which is an online streaming service with over 40,000 movies and TV shows, 1 million songs and 500,000 ebooks. It costs $99 per year.
– Last month, Amazon announced that it was building six fulfillment centres. In September last year, Amazon said that 90% of its sellers in India used the company’s warehouse and logistics services, and that the company nearly tripled its fulfillment capacity, compared with last year.

MediaNama’s Take

This is a good way of incentivising digital payments, given that the cost of doing cash on delivery is higher. Unlikely that competitors will follow suit, though, because they’ve already built paid models around free shipping and other value added services.

Also read: No deal: Snapdeal denies merger with Flipkart or Amazon

Advertisement. Scroll to continue reading.
Written By

I'm a MediaNama alumna from 2015-16 (remember TinyOwl?) now back to cover e-services like food and grocery delivery, app based transport and policies, platforms and media in India.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.

News

The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

News

In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...

News

By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...

News

By Stella Joseph, Prakhil Mishra, and Yash Desai The Government of India circulated proposed amendments to the Consumer Protection (E-Commerce) Rules, 2020 (“E-Commerce Rules”) which...

You May Also Like

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ