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| Shop online even you do not have credit card.. |
Online travel service providers, such as Yatra, Makemytrip and Travelmasti, are strengthening offline offerings to make people who do not have access to credit cards avail of their services, as they look to expand consumer base.
After witnessing success of Cash on Delivery' (COD), Yatra has announced launch of a new 'Cash on Delivery' (COD) service that enables the consumers to make bookings online or through a call centre and make payment in cash. Similarly, while Travelmasti is looking to double the number of retail outlets in the next two years, Makemytrip has recently launched a new mobile application to give consumers an additional platform.
Online shopping sites like eBay, Home Shop18, Tradus and timtara are already banking big time on COD. There are few factors behind success of COD-
· In India people have fear factor while using their credit card online.
· Many people do not have Credit Card
· COD orders can be taking over phone, so customer need not to be internet user
· At times, Indians do not want to spend in advance
In such instances COD is very fruitful from customer end. But from service provider end its not preferable though it increases the business 50-60% straight away.
2 biggest challenges are-
· In COD, payment collection cycle gets prolonged as your courier partner collects money and from them you get your money after deducting courier COD charges.
· Return rate in case of COD is very high as customer anytime can refuse to accept his order. Customer has not paid in advace, you sent order and somehow customer’s mid git changed, he simply deny to accept. But service provider already invested courier to & fro charges and time for the same.
Thus, companies in e-commerce domain adding COD feature to enhance thir reach and volume of business. It really good option from customer’s end but really hard to manage from seller’s end.
Nikhil Kunwar
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