How Flipkart Is Planning to Defeat Amazon: Cutting Costs & Getting Inspired by Jet.com

Flipkart

As Amazon is attacking Flipkart, and Alibaba is preparing its entry into the Indian market, Flipkart, as the startup between giants, needs to fight. Already, investors cut Flipkarts valuation.

Forbes reports on two initiatives by Flipkart to fight back both, the competion and the devaluation.

The first:

Flipkart is offering employees who have failed to meet professional expectations the choice to either resign or be sent off with severance pay; a decision that is likely to impact around 700-1000 employees and is seen as reflective of the challenging times that currently exist in the online retail industry, which is attempting to find a balance between saving costs and chasing a high rate of growth. It has begun curbing discounts, capping salary increments and reducing its monthly burn rate from in the first half of 2016 to $40 million in the latter half of the year.

The market leader has revised its return policy from a 30-day window to just 10 days for top-selling products. The 30-day return policy had led to a logistical nightmare and additional operational expenses for this marketplace’s sellers, who had to pay for the returned shipment from their own pockets. The shortened 10-day return period is likely to address, at least to some extent, this concern of sellers and assist Flipkart to sell additional items on its platform. The new return policy has been applied on categories of electronics, books and mobile phones, which form the bulk of the sales on Flipkart.

This is clearly just about cutting costs on Flipkart’s side.

​Following Jet.com’s Smart Cart approach is more promising, especially given India’s current market conditions:

Flipkart, taking a leaf out of American e-commerce startup Jet.com’s book to save on delivery charges, plans to offer discounts by encouraging consumers to pick up multiple items that can be shipped in one box. This version of Jet.com’s Smart Cart service makes sense in India as courier price slab charges vary with every 500 grams of package.

​But even that is more about Flipkart and the company’s challenges than it is about Flipkart’s customers.

​More on this topic:

​* The Global Cold War Between Amazon and Alibaba Is Going Hot in India
* ​Four of the Seven Indian ‘Unicorn’ Startups Are Ecommerce, 11 More Might Soon Join the Club
* Here Is Why The Battle For The Indian Online Market Is So Fierce
* How Amazon is Tackling India
* While Amazon Launches Prime in India, Flipkart-Owned Myntra Buys Jabong
* Bengaluru: Home to the Indian Headquarters of Amazon, Flipkart, Rakuten and Soon Alibaba

7 comments

  1. […] How Flipkart Is Planning to Defeat Amazon: Cutting Costs & Getting Inspired by Jet.com […]

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  2. […] Indian e-commerce market experiences fierce competition between Amazon and Flipkart, and most likely soon Alibaba too. But the market also still has tremendous growth […]

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  3. […] How Flipkart Is Planning to Defeat Amazon: Cutting Costs & Getting Inspired by Jet.com […]

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  4. […] How Flipkart Is Planning to Defeat Amazon: Cutting Costs & Getting Inspired by Jet.com […]

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  5. […] That last paragraph may hint at another reason for this turmoil: Flipkart recently announced a cost cutting initiative. […]

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  6. […] giants battling it out in that market. But Flipkart is missing a growth strategy right now and everything Tiger Global and its man at Flipkart are doing is about […]

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  7. […] How Flipkart Is Planning to Defeat Amazon: Cutting Costs & Getting Inspired by Jet.com […]

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