Inthree uses hybrid ecommerce model to serve rural customers

Rural distribution company, Inthree is utilising its ecommerce model, which works as a hybrid form of purchase and delivery. Inthree’s customers can order on the company’s portal, boonbox.com, and prepay the bill through agents. As of now, the company is not looking at the COD option for its customers.

The hybrid model works in rural areas where broadband networks are not available as much, or as commonly used as in the urban areas. Inthree currently operates in Karnataka, and Tamil Nadu. It plans to expand to Andhra Pradesh, West Bengal, UP, and Rajasthan by March 2016.

Established relationships helping the hybrid version of ecommerce

Ramachandran Ramanathan, founder and CEO, says that the company’s relationship with its customers over the three years of its functioning has helped boost this unique version of ecommerce. He says, “We had already partnered with India Post, NGOs and selfhelp groups, etc to form trusted distribution agents for the last mile distribution to our customers in rural areas. Hence, we had already built the trust factor required for the ecommerce portal to work.”

Would a hybrid model work in ecommerce?

According to Inthree’s plans, the company’s distribution agents are allowed to operate boonbox.com on behalf of buyers. Going by Ramanathan’s theory, it appears as though looking at a traditional ecommerce sector in a remote village would be difficult. Particularly for those who belong to the baby boom generation and for senior citizens. In such a scenario, employing an agent would help the company put its name on the map.

Ramanathan has also correctly pointed out the logistics issues that one would face in a remote location. To mitigate the risk, cash on delivery will need to be done away with. Ramanathan says, “With the extra burden incurred by us in the last-mile distribution, cash-on-delivery would have become unsustainable as 70% COD products are rejected by customers.”

Whether such an arrangement would work in an urban, particularly Tier 1 or 2 cities is something to be considered. While there may be takers for it, the popularity of the current model might overshadow this hybrid version.