Ecommerce: Snapdeal Gold launched as e-retailer takes premium service war to Amazon, Flipkart

By: | Published: August 30, 2016 6:25 AM

E-commerce firm Snapdeal on Monday launched its premium service called Snapdeal Gold. The free-to-use service is automatically applied whenever a user places an order for a product that has a gold badge displayed next to it.

Snapdeal, Snapdeal offer, Snapdeal disocunt, Snapdeal news, Snapdeal India, Snapdeal independence day, Snapdeal offer todayConsumers can avail the service for products sold under categories including fashion, mobiles, electronics, home and appliances. (Reuters)

E-commerce firm Snapdeal on Monday launched its premium service called Snapdeal Gold. The free-to-use service is automatically applied whenever a user places an order for a product that has a gold badge displayed next to it.

The launch comes within 10 days of Flipkart launching Flipkart Assured and almost a month after Amazon India introducing its premium service Amazon Prime.

“As per a report by PwC, there is a shift in consumer behaviour and expectations from e-commerce which goes beyond discounts. We are focused on creating a loyal consumer base by fulfilling a seamless experience from order to delivery,” said Rohit Bansal, co-founder, Snapdeal in an email response to FE.

Apart from free shipping, customers can avail next day free delivery of goods, wherever available. Under Snapdeal Gold, the e-commerce company has also extended the period of return from seven days to 14.

Flipkart Assured is a free to use premium service, which allows online shoppers to avail services such as free shipping, etc.

Consumers can avail the service for products sold under categories including fashion, mobiles, electronics, home and appliances.

While Amazon Prime is a paid service available at an annual fee of R999 which besides free one-day and two-day deliveries to ‘Prime’ members in over 100 cities is also packed with original video content under Prime Videos.

However, industry observers say that both Flipkart and Snapdeal are simply trying to ape the global e-commerce player.

While both believe offering a free to avail premium service will get traction, one forgets premium consumers are not price conscious.

According to Harish H V, Partner at Grant Thornton, the situation is similar to a high street where when one-shopkeeper announces 40% sale, rest of the retailers are quick to follow suit.

“With both the e-commerce companies witnessing consumers opting for Prime service on Amazon, there is a belief that when introduced on respective sites, customers will make a dash for it. However, getting the backend ready in such a short time to be able to provide the services is no child’s play,” says Harish.

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