Flipkart In News Again
Flipkart which was in news few days back for shutting down its Flyte Musical Store is back again with a latest news that it will not deliver products of below 10000/- Rupees through COD in Uttar Pradesh, The management team has taken this decision in order to secure itself from the losses which they were facing due to increasing fraud at UP, according to them customers of UP were ordering products from Flipkart and after that denying to buy that product or saying they haven't ordered the product. These type of cases are very much prevalent in UP where customers are visiting to Flipkart website and ordering products just for fun.
According to the management this decision is only business oriented since there is huge logistic cost involve in delivery of products, on the other hand if any customer is cancelling the order or saying that they haven't ordered the products then the cost of sending these products back to warehouse also cost and it also take approx 10 days for a product to reach at warehouse, there also Flipkart is getting hit badly because, if the product is in Transit for 10 days it will also cost the lost of opportunity of delivering the same product at some other location.
In my view they should try to learn from India Times shopping where 80% of the products are being sold through online banking or debit card, in which they are doing great,they are just giving huge discounts if you pay through online banking and debit card which results in immediate payment of products by the customers because they are getting the products at very cheap rates, stopping COD scheme or making COD delivery of products of more than Rs 10000/- at UP will not help Flipkart.