Core services > Cash on delivery
Cash on delivery
COD is Cash on delivery as also collect on delivery. It is a convenience concept and thrusts ecommerce in desirable directions. All these dot coms such as Flipkart, Myntra get the money after 2-3 days, even though it is collected that very day. At CI per se shipment of x value is expected to touch base, the agent deposits in the system of the franchise owner. ‘Advance Wallet’ is maintained, the amount reaches the same day in real time. Part of terms, conditions is to maintain 25-30 k of the CIC.
Another unique feature introduced by Connect India is card on delivery, technology of the same is available in CI. This is a forward service inducted into the system by CI.
COD is the most popular mode in developing countries and will certainly form an integral part of rural e-commerce, importantly because Debit Or Credit cards will take time to reach the rural masses.
Pros and Cons for retailers/ supply chain stores for online or mail orders are:
- The absence of ownership of a credit card for purchasing.
- This may increase impulse purchases since payment is to be made later.
- The credibility standards stand enhanced wrt retailers or supply chain stores since the consumer pays when delivery of purchases happen.
- The major fall out for the retailer or the supply chain stores are the chances of cancellation of orders or return of orders being greater since no money has been paid as advance.
- Cash mode is received well in developing countries, cash flows in, no money is blocked in business transactions.
- Also 1-2 % extra paid for card transactions are absolved, instead rebate/cash discounts is offered which works in the interests of both parties.
- Risk factor is also ruled out.