Cash on delivery (COD), sometimes called collect on delivery, is the sale of goods by mail order where payment is made on delivery rather than in advance. COD has become popular in India with emerging online retailers as many Indians prefer to pay in cash traditionally since there is no risk of not receiving the product from the online retailer when the payment is done beforehand.
Top Indian e-commerce companies such as Flipkart, Myntra, Amazon, Snapdeal are pioneering this COD concept to attract more customers. Jabong however going one steap ahead of it by launching instant refunds for cash-on-delivery returns. Jobaong delivery person will come with bundle of currency notes to instantly pay back customers whenever they want to return a packet.
Starting this week, Jabong will begin giving Cash-On-Delivery customers in Delhi instant cash at their doorstep even as the delivery guys pick up return packets. In the coming months, Jabong plans to take this initiative across the country. It was the COD system that helped ecommerce companies gain major traction in a country dominated by traditional retailing values.
E-commerce portal's customers in India are usually find COD as convenient way purchase online, but they also complain that whenever they wanted to return a product, it often took them long to get their money back. Jabong is solving this problem and its definitely give Jabong edge over its competitors.
The company which will be managing the cash payments for Jabong is - Gojavas. Gojavas has been testing its instant cash payment system — called GoRupiah — in Delhi for four months and now says it is ready to actually roll it out starting in the Capital. The company has already formed a reverse-logistics team of around 250. Gojavas says Jabong, after clearing a refund, will transfer money into a separate account of Gojavas and the delivery company will pay the consumer.
Refund Policies of different e-commerce sites in India
Amazon India takes 3-5 days for refunds via online trasnfer or COD and 10-15 days for refunds through cheques.
Flipkart takes around 7-10 days for refunds of payments on cancelled products purchased through its. Snapdeal also takes 7-10 days for refunds to bank accounts for COD csutomers.
Myntra however takes 15 days to refund to cusutomers.
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