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toption.org · Jan 30, 2025

Blinkit against Amazon

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Khushi Lunkad · toption.org

Hi, it’s Khushi Lunkad 👋

Thanks for subscribing to my newsletter at toption.org, where I share real examples from my day-to-day work. Occasionally, I also share case studies of other companies I find inspiring.

I wrote a couple of things 👇

  1. Blinkit against Amazon (scroll below to read or here)

  2. TW: How to market when your audience deals with a loss (read on the website)

Home / All Case Studies / Blinkit

There's a concept called "Frequency of Use". This decides how frequently someone uses your product.

The higher the frequency = the more the money you'll make off of them.

There's another concept of new users and returning users. If users repeat purchases, your lifetime value from that customer increases.

The higher the lifetime value = the more money you have

Blinkit is a quick commerce platform that delivers products within 10-30 minutes. They maintain dark stores in densely populated neighborhoods.

Look at what Blinkit shows.

And what Amazon shows for the same search query.

Notice a difference?

They sell small packs. And don't let you buy in bulk, by default.

The default matters. And, they also prevent you from ordering more.

Granted, they're a quick commerce company with deliveries that happen on bikes and dark stores that can house only limited inventory.

But the change is huge because:

1) I'll have to buy more frequently and open their app often

2) I'll have to ask someone else in my family to sign up too to order more

3) To get 'free delivery', I'll be tempted to add other stuff in my cart that isn't a necessity.

Funny enough, they are almost as cheap as the wholesale rates. Especially for items that sell most on Amazon (eg, garbage bags).

How to market when your audience deals with a loss? This is a bit more personal and comes with a trigger warning.

Read it here

That’s all for now. Thanks for reading :)

Best,

Khushi

Read the original on toption.substack.com

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