Taking into consideration the fact that Indians are very skeptical about sharing their plastics card details online, Dataquest sets out to find out if this this behavior can be termed as a benefit for the cash on delivery system. Join us...
"In India, we have all grown up with a healthy distrust of shopkeepers. So, making customers buy online by paying through a credit card up front is hard. It has taken us years to win this trust of our customers. Today, we offer customers the option to pay cash on delivery, yet hardly 5% of our customers use this option. Almost 95% of shoppers pay online at Indiaplaza.
On the other hand, I believe that almost 50% of the customers opt to pay cash on delivery for their orders at new e-commerce companies. This shows that customers continue to have low trust with such sites and prefer to see the item before they pay. A lot of hard work and analysis is required to gain the trust of customers and build an online brand. We have done this successfully and that is why our website sales and traffic continues to grow significantly."
-K Vaitheeswaran, CEO and Founder, Indiaplaza
"The fact that Indians are skeptical about sharing their card details online is one of the key reasons why COD does well. For those customers who are not comfortable getting their one time passwords etc, COD works well for them as well."
-Shipra Jain, Chief Merchandising Officer, Bluestone.com
"Till a few years back, Indians were extremely skeptical about using their plastic money online. Now with the introduction of safe payment options and trust among customers, online shoppers are coming of age and don't hesitate in make payments online. HomeShop18.com is witnessing more openness and an upward swing in online payments. In fact, another interesting trend observed by HomeShop18.com is the adoption of EMI schemes by online shoppers. Number of customers who are opting for easy
monthly installments has increased over last few months (EMI). Payment modes for online shopping are fast evolving and have become more flexible offering consumers' ease of payment, surety and security.
-Sundeep Malhotra, CEO and Founder, Homeshop18.com
"From business perspective, online transactions are the best way to go. The COD involves a lot of logistics, and sales are also exposed to fake orders. But, yes, given the hesitation in indian customers' minds about making payments online owing to internet frauds and hackings, COD is a necessary evil. It gives the customer the confidence to buy, and this is driving the business today to a great extent."
-Peyush Bansal, Founder & CEO, Valyoo Technologies
"Given that initially customers are hesitant in disclosing their financial information online, COD does come in handy at helping businesses establish trust amongst their consumers. It follows that the system of Cash payment against delivery is often the preferred payment option, and gains instant acceptability across the customer base, specially in India."
- Ishita Swarup, CEO & CO - founder of 99labels.com
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