Cash on delivery has long been a favorite option for online shoppers in India. Credit and debit cards have been slow in their adaptation rate and a vast percent of shoppers still prefer shelling out cash once they have received the product, to making advance payments using their cards. However, as per data from Snapdeal, there has been a remarkable uprise in the number of consumers choosing means of payment other than cash on delivery.
As per data from Snapdeal, over 50 percent of its users during the first two days of Unbox Diwali Sale chose to pay using alternate means such as debit/credit cards, net banking or prepaid wallets. This is in contrast to the situation just a year or so ago, when a large portion of the consumers in e-commerce were wary of any mode except cash on delivery.
The surge of interest in the use of plastic is due to several factors. First off, the systems are no longer new and many of the folks who were wary of using their cards while shopping online, are now whipping them out with gusto. Next, there have been a huge bunch of offers by banks and the retailers themselves, all meant to encourage users to use prepaid modes. For example, Flipkart is offering a 10 percent discount upon payments done via cards in collaboration with State Bank of India, on the occasion of Big Billion days.
Snapdeal is not behind either and has launched a slew of new schemes to attract customers. The company recently launched the Snapdeal Gold service upon lines similar to Amazon fulfilled and Flipkart Assured. The Gold option provides consumers with the option of fast shipping and stringent pre-shipping checks to ensure the quality of their product.
Speaking on the topic, Jayant Sood, Chief Customer Experience Officer for Snapdeal said,
We are excited to see the overwhelming response to our newly launched Snapdeal Gold service. We are confident that customers will have the best experience with Snapdeal this Diwali.
The company is also deploying advanced technologies such as predictive data analysis to ensure that it already has a fair idea of which products are likely to be in demand. This enables it to prepare those products in advance and keep them ready for dispatch. (Nice work!) Meanwhile, the growth of plastic is certainly good news for the e-commerce industry.