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Online fashion retailer Voonik's subscription-based loyalty program is now contributing almost 25 per cent to its daily orders. As Voonik’s CEO Sujayath Ali explains members are offered free shipping and zero cash-on-delivery charges, and this is likely to contribute 50 per cent of daily orders in the next three months.

Unlike Amazon Prime, which has a loyalty program for select items, Voonik Primo offers free shipping and cash on delivery across all items on its platform at Rs 99 for six months. The company expects a surge in repeat and new orders through the program, which will cancel out logistics costs. Most users are from Tier-II and III towns who prefer COD.

Nearly 75 per cent of Voonik's orders are from Tier-II, III. By waiving cash on delivery and shipping charges, the company is likely to take a hit on margins. Ali, however, pointed out the company has been prepping its platform at both technology and ground levels to cut costs and for the past six months, it has been working to logistics more efficient.