Cash on Delivery - The Kill Pill?
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manojthansi.uf9
Jun 9, 2012, 12:29:50 PM6/9/12
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http://pluggd.in/forum/discussion/384/cash-on-delivery-the-kill-pill
Every 'funded' startup has resorted to CoD - i.e. cash on delivery model stating the obvious need to reach out to those who aren't comfortable paying online.
A typical CoD costs a minimum of Rs. 30/ and the worst part is the reverse logistics associated with it (when the product is returned back).
Apart from managing such transactions (sometimes, the guy who collected cash will vanish away) to ensuring the accounting process, CoD isn't adding much to the whole ecosystem.
In fact, I am not even confident of saying that CoD is an enabler to e-commerce. If ecommerce is just about ordering from the web, then lets call it e-ordering service (and not commerce).
Great for 'funded' startups - but definitely not for the ones who aren't funded. Given the lack of margin in online selling, CoD is more of a liability than an enabler. If ecommerce sites do not move out of CoD, then consumers will never ever move to 'buying' online - which defeats the whole purpose of an online store.
A typical CoD costs a minimum of Rs. 30/ and the worst part is the reverse logistics associated with it (when the product is returned back).
Apart from managing such transactions (sometimes, the guy who collected cash will vanish away) to ensuring the accounting process, CoD isn't adding much to the whole ecosystem.
In fact, I am not even confident of saying that CoD is an enabler to e-commerce. If ecommerce is just about ordering from the web, then lets call it e-ordering service (and not commerce).
Great for 'funded' startups - but definitely not for the ones who aren't funded. Given the lack of margin in online selling, CoD is more of a liability than an enabler. If ecommerce sites do not move out of CoD, then consumers will never ever move to 'buying' online - which defeats the whole purpose of an online store.
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