Shopclues introduces Cash Before Delivery to solve payment bottlenecks in Tier 2 cities

Infrastructure issues in India places many hurdles and glitches for online retailers, especially for logistics. Although the past few years have seen changes in the logistics sector, the pace of growth hasn’t been proportional to the pace of growth of online shopping. However, online retailers are constantly trying to innovate so that they can increase reach and ensure better customer experience.

Prominent players like Flipkart, Myntra and Amazon have invested in their own logistics network to facilitate efficient and faster last-mile deliveries.Recently, Amazon launched a pilot project in Bangalore wherein it tied-up with Kirana stores around the corners of localities where customers can pick up deliveries at their convenience.

On similar lines, Shopclues has launched Cash Before Delivery service (CBD) by tying up with Suvidhaa, offline payments and remittances company, to facilitate easier payments for online buyers in tier 2 cities and towns. Suvidhaa has more than 65,000 small retail outlets spread across 2,500 Indian cities and towns.

Shopclues has its target audience in small cities and towns where electronic payment penetration is relatively lower. CBD will help tap into this potential customer segment and help to widen its reach.

Currently, about 70% of Shopclues orders are from customers in tier 2 cities and towns, out of which at least one from every four customers is expected to use CBD service soon.

How CBD will work?

• CBD will be one of the payment options given to Shopclues customers at the time of checkout.

• Once chosen, customer has to make cash payment at the nearest Suvidhaa outlet within 48 hours.

• The backend technology of Suvidhaa is integrated with Shopclues, so when payment is done Shopclues gets an alert.

• Order is processed by Shopclues.

• Customer can choose delivery at his address or Suvidhaa outlet.

How can an Indian Online Seller benefit from CBD?

• CBD will enable shopping from customers in smaller towns and cities who don’t own credit or debit cards.

• CBD will help to reduce dependence on COD, which is the most popular payment option currently. However, returns from customers are higher with COD and it is also costly for retailers to provide this option.