Flipkart, India’s largest online store has increased their minimum order limit for free home delivery of items from Rs. 200 to Rs. 300, effective today!
Flipkart, a startup by two IIT-ians in Delhi turned out to be the India’s largest online marketplace, and it has been hugely popular for the offers and low-margin price range it offers for the customers. But now, the company which was known for having a very low price cutoff for shipping goods for free in India, has now moved on. Flipkart now has changed their minimum limit to do a free home delivery from Rs. 200 to Rs. 300! This comes due to the cash burn the company has experienced since they’ve got a very low margin for the goods they sell!
Flipkart recently acquired its competitor in India, LetsBuy, and has now moved all the product database from LetsBuy to itself. Talking about this move to increase the cutoff price for free home delivery, Mr. Ankit Nagori, VP of Retail at Flipkart says:
“This impacts less than 15% of our customers. However, it gives us much larger efficiencies in our supply chain and we will be to pass on more benefits to our customers after this change. The charge for shipping for orders below Rs 300 remains same as earlier at Rs 30,”
This looks reasonable at present, and the company has been getting some huge funding from various sources across the globe! Currently, the only competitor for Flipkart in India is Junglee.com, which is backed up by the world’s most popular online market website, Amazon!
Image Source: Saket Jajodia
Source: TOI