In what could be seen as yet another indication of the need to scale up logistics services in the country, the deliveries of orders have been quite delayed this Diwali season. While the delivery networks are gasping for breath to keep up with the speed, customers are cancelling orders in their impatience.
Some customers chose to buy from an online marketplace after much contemplation and cross-checking on different platforms, including physical shops. But much to their disappointment, their deliveries were not made in time leaving them furious and completely disappointed.
What’s adding to customers’ woes are the excuses and changing dates of delivery given by both online retailers and logistics companies. A Blue Dart customer care executive informed a customer, querying about his purchase, that except for Flipkart which has its own logistics system, all other etailers were going through the same problem.
Apparently, some customers even refuse to accept the packages, as the promised dates of delivery were long gone. Most purchases were done as gifts for Diwali so when they did not reach on time, customers feel they have been let down by online retailers.
If reports are to be believed, packages are piled up in the warehouses of logistics providers. According to them, delays occurred, as they were not able to handle the rush and in some cases, because the packages were sealed by sales tax authorities in some states due to VAT issue.
FedEx has trouble in delivering about 6000 plus products ordered by the residents of Patna, Bihar. “The consignment has been sealed by the sales tax authorities who are demanding payment of VAT on the goods to be delivered. Efforts are being made to speed-up the process but we are still not sure how long it will take for this issue to be resolved,” said a FedEx executive.
Online retailers, including the smaller ones, are of the opinion that this year has been particularly good for Diwali sales.
“What is really heartening is that despite a small company we have received orders worth almost 20 times the same period last year. The handicrafts are sourced from Uttar Pradesh that levies no VAT on the products. The irony however, is that our despatches are now stuck in certain locations especially Bihar for the last 15 days owing to VAT issue. Similar problems also exist in states like West Bengal, Gujarat, Maharashtra and Karnataka. We are making our customers aware about the issue and hope to get this resolved,” said an Agra-based promoter of handicrafts.
Even marketplaces feel their efforts have paid off this season. “We have seen a multi-fold growth in our orders. With the increase in order volumes the delivery maybe impacted due to unprecedented delivery demands on the logistics companies. We have not seen delay in our deliveries due to any taxation issues or confiscation though,” said Aakash Moondhra, Chief Financial Officer, Snapdeal.
Apparently, retailers selling through television networks and consumer electronics stores have also faced delayed delivery issue with their products this season.
Just online retailers or others too, many customers opted to cancel their orders due to the delays in their deliveries. It’s time for logistics service providers to buck up and polish their services to avoid such glitches in the future. They have only benefits to gain with the growth of ecommerce.
After dwindling with her family business, into travel and hospitality, for more than 3 years, Pooja Vishant found her true love in writing. Happy-go-lucky and cheerful, she loves pink; so pink is the way to go if you want to get into her good books. The Associate Editor keeps track of even a leaf that has moved in the ecommerce world!
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