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Flipkart introduced 'Partial Payment' to Decrease Cancellations for CoD orders

KR - Reporter

Flipkart has created a new payment method for reducing the cancellation of CoD (Cash on Delivery) orders that requires buyers to pay for a product partially when they place the order. The remainder will be paid as usual when the items are shipped.

Flipkart has created a new payment method for reducing the cancellation of CoD (Cash on Delivery) orders that require buyers to pay for a product partially when they place the order. The remainder will be paid as usual when the items are shipped. Called 'partial payment' the cancelation of e-commerce operators in the country is required to that, which is a significant problem with CoD orders.

“When a customer pays an amount at the time of purchase, the chances of customer cancellations and returns get automatically diminished”, Flipkart reportedly wrote in a letter to sellers on its platform.As predicted the move has been welcomed by All India Online Vendors Association (AIOVA). In a quote to ET, it was a positive first step towards the full prepayment of Indian e-commerce. The Agency said that it also has the potential to reduce customers' prices.

The AIOVA has also argued that the ruling could potentially reduce consumer costs marginally. “This move can lead to 2-3% reduction in prices for consumers. (That’s because) losses of such undelivered orders were factored as a cost (until now)” as said by a spokesperson.  However, it is worth remembering that even for partial fees, the commissions paid to sellers remain the same.

For most users when they are shopping online Cash on Delivery or CoD is the preferred way for payment. The program is widely known as popularized online shopping in India, which was launched by Flipkart in 2010. But most sellers, including established markets, now seek a move to complete prepayment orders. However, it remains to be seen if this happens soon.

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