Selling perishables and perfumes online – raising a stink?

The Indian consumer has turned to the Internet for all shopping needs. Everything, including precious commodities like gold and diamonds are being shipped to buyers. The competition among online sellers is intense. Many have folded inwards due to the inability to sustain. In such a situation, particularly in the case of branded and expensive commodities, it is important to gain the customers’ trust.

There have been many instances of buyers’ orders getting mixed up, bricks and stones being delivered instead of tablets and phones, and fake brands being circulated. One of the biggest headaches for online sellers is the sale of fake brands. Most sellers like Flipkart, Amazon and Jabong have expressed policies in place against fakes. They claim to give clear cut instructions to their sellers on the quality and brand. However, despite all the efforts, things slip past them.

French origin brand Lacoste says that except for its perfumes and sunglasses, it does not sell any other product online. This said there are many fake products of the brand that are doing the rounds.

Sensitive areas

Fake luxury brands multiply over the years

A 2014 study conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) says that the fake luxury brand market would double by 2015. The study said that, ‘Market for fake luxury goods in India is growing at twice the growth rate of genuine luxury products and is largely being driven by web shopping portals that account for over 25 per cent of the fake luxury goods market in India’. This clearly pins the blame on e-tailers.

The study quotes D.S. Rawat, secretary general of ASSOCHAM, “More corrective measures need to be taken to lock down the emergence and continued existence of counterfeit goods market in the form of effective intellectual property enforcement, plugging loop holes in the legal & judicial structure and higher conviction rates since the absence of these measures collectively lead to the global brand‘s equity getting diluted and reduced consumer trust in their brands,”.

Perfumes

Selling branded perfumes online is a risky bet due to the abundance of fakes that are circulating. It is particularly tricky because most websites are platforms or marketplaces. It is easy for slips to happen at the seller’s end. Flipkart, Jabong, and Amazon have stated in their websites that they sell only original products, and do not entertain fakes. However, there have been many instances where buyers have complained about fake perfumes.

Several buyers have complained about perfumes from international brands bought from ecommerce portals. On many occasions, the perfumes turn out to be fakes, with the fragrance lasting an hour or two, as against an all day fragrance that any reputed brand gives.

Many users have given out bad reviews on buying perfumes online in general. The main complaints are that the products are fake, the perfume smells stale, and the bottle has a cheap finish. Circulating fake perfumes harms the reputation of established brands that have built their name over the years.

Selling consumables online

Another tricky area is groceries and eatables. Fruits, vegetables, and meat have a limited shelf life; therefore ecommerce dealers should be very prudent and careful while dealing with them. BigBasket has a ‘no questions asked’ returns policy where the buyer can return an item. The online grocery store also promises that it hand picks fruits and vegetables and packs it hygienically.

However, most reviews on Google reviews say that the perishables (fruits, vegetables and milk) are either under ripe or over ripe. There are satisfied customers as well, but they are also of the opinion that vegetables delivered are rotten, or that they have only purchased non-perishables. The reviews also include complaints with regard to late delivery, incomplete delivery and unsatisfactory customer support.

There is a comprehensive review on wereview.com, which speaks about perishables. The reviewer says vegetables and fruits take a week to ripen, and fish also had some issues. Another review on mouthshut.com also mentions fish. The reviewer had bought cut fish, but they were badly chopped, making it difficult to cook.

The reviews for Zopnow are as bad, or worse. A disturbing review on mouthshut.com says that the buyer found a dead lizard in the packet of mint leaves that was bought at Zopnow. This clearly shows that dealing with perishables is a very difficult task.

Amazon joined the bandwagon when it launched the sale of gourmet food in October 2014. With an established name, Amazon has the trust of its patrons. However, this means that the responsibility is multi fold as well.

The consequences

Experts in the corporate legal field have confirmed that a company does not need any special permit over and above the regular requirements (registration of the company with the Registrar of Companies, registering it for Sales Tax or VAT, registering of the company’s directors) if it plans to deal with online commerce. This means that anyone can start an online marketplace to deal with (legal) commodities.

Online marketplaces have to be extremely careful when it comes to sale of delicates like consumables and perfumes. Transporting groceries leaves scope for torn packages, products outside the expiry date, spoilt or rotten eatables. Online sellers are also setting themselves up to face legal actions from both miffed customers and the brands themselves.

It also harms the seller’s reputation. In a climate where options are available aplenty to the customer, it is easy to be knocked off the pyramid. Indian online sellers need to be well prepared to take on the challenges of selling perishables.