Leading e-commerce player Flipkart is offering free-delivery to customers using its mobile application, making an all-out bid to tap the young population who shop while on the go. The company has not decided how long this scheme will last though. So far, online retailers have been competing on the quick delivery plank, with most launching same-day or next-day delivery.
Currently, US-based Amazon does not charge any delivery fee, irrespective of the size of order or the platform used, to make a purchase in the India market. Most e-commerce sites offer free delivery beyond a certain price point, which is often Rs 1,000.
Traffic from mobile for Flipkart is about 40%, translating to 20% of their total orders. ?India is going to be the first where the mobile has overtaken without the desktop boom and m-commerce will lead the way forward,? said Sachin Bansal, CEO & Co-founder of Flipkart, had told Business Standard recently.
Snapdeal, another major player in e-commerce, launched its mobile application about a year ago without any such offer.
The company expects to have about 50% of its traffic from mobile by the end of the year, up from 35% now. Fashion giant Myntra currently has no mobile application.
Experts say companies promote mobile applications because of brand loyalty. The consumer is more likely to come back to the company through the application, rather than a generic Google search which might divert the consumer, they point out.
Discount on purchase through mobile applications was a trend started by travel portals about two years ago. ?Even now, we have special promotions on mobile applications,? said Dhruv Shringi, Co-founder & CEO, Yatra, a travel portal.
Yatra gets about 20% of its traffic and 17-18% business from mobile. Even in travel, m-commerce is expected to be about 30% of the overall business by the year end.