Saturday, April 28, 2012: 06:17:06 PM

Retail Poll Feature

Cash on delivery truly a game changer

More and more online retailers likely to provide cash on delivery facility with the increasing popularity of the concept

The cash on delivery (COD) facility has gone a long way in establishing the trust on ecommerce. As online retailing gains momentum, the COD facility is likely to become more common. However, the payment option and procedure can often be a major challenge for retailers as it can cause delay and increase the processing aspect of the payment.

 
In a recent survey conducted by Retailing360, voters unanimously voted that the COD facility was indeed a game changer in the online retail industry. The survey makes it clear that the average Indian consumer is more comfortable paying the money in hand after receiving the product.
 
The urban youth has been a major taker of the COD facility as using their credit/debit cards can often lead to unwanted consequences. According to Amit Mishra, analyst at a leading multinational bank in Kolkata, “COD is the safest and most convenient form of ordering online. One advantage is that we do not end up spending more through credit cards nor debit card and being disappointed by the final product.”
 
Part of the strategy
 
As explained by brand consultant and creator-facilitator of theBARCODE, Caroline Fernandes, “Online retail today dominates the retail industry in India. Companies have to come up with more and more innovative strategies to lure in customers. Facebook pages, communities and strategic advertisement are all part of the game. COD is one such tool that may have its risk but surely takes into confidence the average Indian customer.”
 
The cases of fraud, untimely delivery and lack of credibility of online retailers in the initial years of introduction of online retail have all contributed to the present popularity of COD systems. It is likely that more and more websites will be adopting the strategy as it has become a hot favourite with the customers in recent times.
 
Tias Chakraborty

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