Snapdeal discontinues Cash on Delivery option for transactions beyond Rs. 20,000

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After cutting down the payment time to sellers by 40%, Snapdeal has decided to slash its cash on delivery (COD) limit by 60%. The marketplace is trying to encourage more prepaid transactions this way and in turn reduce the return rate of goods to sellers.

Snapdeal has been in hot water on account of mounting seller troubles on its platform. This step should provide a bit of relief at least to big ticket item sellers. The etailer has confirmed that it will end the COD feature for transactions higher than Rs.20,000.

Prepaid orders reduce product returns

The platform has noticed that prepaid orders have resulted in far less returns when compared to COD orders.

The company’s spokesperson stated, “Earlier, the CoD cap was for transactions over Rs 50,000. However, it has been brought down by 60%. Accordingly, CoD order are restricted to Rs 20,000 thus making most of the high-value orders on our platform prepaid.”

Rival marketplaces Amazon and Flipkart have not yet altered their COD orders cap. Flipkart allows COD on transaction up to Rs.50,000 and Amazon on transactions up to Rs.30,000.

Snapdeal, on the other hand, began restricting COD transactions sometime during mid-January. This was done to reduce the number of fake orders and returns that hurt sellers dearly. After the demonetization announcement, the marketplace restricted COD orders due to the shortage of acceptable currency.

This restriction was discarded when the cash struggles were sorted and prepaid orders started catching on. Snapdeal’s spokesperson stated that after demonetization the number of prepaid transaction rose drastically.

The spokesperson said, “We believe that high-value orders should be prepaid and it is also good for both the e-marketplace as well as the sellers.”

Solutions to seller traumas

Snapdeal sellers have been complaining about payment defaults by the marketplace. In fact, many have allegedly threatened to quit the marketplace. To help sort out the issues sellers are facing, the marketplace meet with the Sanjay Thakur, the previous president of ESS (eSellerSuraksha) and discussed seller troubles on Snapdeal, on Wednesday.

Thakur informed Indian Online Seller, “We had a good and productive discussion with Snapdeal management, focused on growing business opportunities through progressive steps relating to reducing returns, increasing preference for prepaid orders and a smooth migration to GST regime. We are very reassured and encouraged with the responsive and supportive engagement and look forward to mutually beneficial business growth.”

Multiple disputes cases were put together and brought to the etailer’s notice. Based on reports 50% of these have been discussed and will be resolved in immediately. The remaining 50% are still being looked into on account of colexities associated with them, Thakur mentioned.

According to Snapdeal’s spokesperson, “There was no outstandings in terms of payment issues. They have forwarded some cases to us which were discussed separately and are being looked at in terms of their genuineness. While some cases have been settled already others will get settled in the due course.”

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