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Flipkart is looking to launch a VIP program to rival Amazon. According to Moneycontrol
Flipkart VIP is being sold at an introductory price of Rs 499 per year — similar to what Amazon had priced the Prime programme during its initial years — but is a third of what Amazon currently charges for Prime. While this may eventually increase, both are similar when it comes to other facilities like early access to sales, steeper discounts and the like.
Amazon Prime has more than 200 million members globally and according to Datum's estiamtes around 10 million members in India. The importance of the program is due to the following reasons
Non-Prime shoppers on Amazon have an average order value (AOV) of around Rs 1,000-1,200 but Prime customers have an AOV of Rs 1,800-2,000, nearly double that of regular shoppers.
Amazon Prime customers buy more frequently and buy more categories. Prime customers are the most profitable customer for Amazon not only in India but globally
But Why Do customers Subscribe to Amazon Prime Membership
Free 2-day shipping and access to Prime Video rank as the top two benefits of being an Amazon Prime member, according to a survey by Datum.
Flipkart VIP Program Lacks the Equivalent of Prime Video
Amazon Prime Video is the second most important feature for Amazon Prime membership. Currently there is no equivalent for this on Flipkart VIP program which reduces the attractiveness of the program to customers who don't shop that frequently. Flipkart is trying to acquire the high spending customers using this program and is offering additional services for travel via cleartip to attract these customers but they have to figure out the equivalent of Prime Video for this program.
