Paytm offers same day delivery in 20 cities; Is it catching up with competition?

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Apart from Flipkart and Amazon, online sellers can also provide same day delivery on Paytm as well. The ecommerce marketplace and mobile payment platform has taken its online-to-offline (O2O) model to new heights with same day delivery. O2O delivers will be facilitated in 20 cities for only two categories at the moment, that is, mobiles and large appliances.

What’s the plan behind this strategy?

The ecommerce company has already started delivery with locally based commerce and more categories are likely to be added to it in the future. But why has Paytm started with large appliances?

O2O delivery service was initiated to meet festive demand in October 2015. Paytm has over 125 million users at the moment and ships about Rs. 20 crore worth merchandise on the same day to its buyers in a month. From its seller base of 1.2 lakh sellers, approximately 3000 of them partnered with the ecommerce platform for shipping large appliances locally.

The company wants to add 10,000 more online sellers in 50 of the country’s top cities for its O2O commerce to have a broader reach.

Is this a measure to catch up with competition?

The delivery and installation of large appliances is an area of trouble for most online marketplaces. Yet, Flipkart claims that this financial year (2016 – 17) large appliances will drive growth. As a result they have introduced a reliable delivery and installation facility for large appliances. This they expect will enhance customer experience.

Paytm is catching up with the ecommerce leaders. Its sellers provide delivery and installation services on their own. And Paytm enables them to do so with training in customer expectation and experience management.

Consumers can easily check which products have nearby sellers to ship and service their products on the same day of ordering. A nominal amount will be charged by the seller for same day shipping plus installation services.

The VP at Paytm, Sudhanshu Gupta said, “The packing and installation in case of appliances is done by the sellers themselves. With this, we are able to cover a critical category of large appliances that cannot be shipped by traditional warehousing models.”

Other measures to beat competition

Paytm recently announced it would help online sellers source Chinese goods at lower rates with the help of Alibaba. This is expected to help sellers cut out the logistics and substantial expenses involved in importing Chinese goods on their own.

The etailer now also allows sellers to operate in 6 regional languages and introduced Sunday Bazaar, which is a big hit with its online consumers. The marketplace sells 1 lakh products on the weekend as a result of it.

Paytm plans to concentrate on its marketplace business which is a critical part of the company. It should help them develop a better strategy specific to online retail and the firm is sparing no effort to ensure this transition is a success.

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