India Post is ready to enter into
online market world by introducing a new service with Cash-On-Delivery payment
option. A new service from India Post called Speed Post- Cash-On-Delivery
(SP-COD) will come into existence all over India soon. Pilot phase of this
service has completed satisfactorily in selected Post Offices.
Actually COD is not a new concept to the Department of Post because they are dealing with a similar service called Value Payable (VPL&VPP) service for so many years. The VPP or VPL is comparatively costly service as the charge is based on the value of the article sent. A customer will have to pay Rs 250 for receiving an article worth Rs 5000 in VP service. So this facility is not widely used in online shopping. Online shopping in India is increasing day by day and most of the consumers are opting for COD payment option. Almost all giants like eBay, Snapdeal, Flipkart, etc are utilising the service of Private Courier services. Market share of India Post in this field is very low compared to courier services. The cost of sending items by VPP is not affordable either by a customer or by a seller. By introducing new service called SP-COD, India Post is targeting online marketing. The cost of sending article by COD will be comparatively cheap and it will have accurate track and trace facility. It will be a close substitute and serious threat for Couriers’COD service. At the same time market reach of online shops can be extended to rural areas where there is no network for courier services. By using the SP-COD service of India Post, online shops are using the vast network of India Post and thereby they can send items to any corner of the country. Now online shopping is limited to the people who are living in the town areas because the facility is based on the service area of courier companies.
Actually COD is not a new concept to the Department of Post because they are dealing with a similar service called Value Payable (VPL&VPP) service for so many years. The VPP or VPL is comparatively costly service as the charge is based on the value of the article sent. A customer will have to pay Rs 250 for receiving an article worth Rs 5000 in VP service. So this facility is not widely used in online shopping. Online shopping in India is increasing day by day and most of the consumers are opting for COD payment option. Almost all giants like eBay, Snapdeal, Flipkart, etc are utilising the service of Private Courier services. Market share of India Post in this field is very low compared to courier services. The cost of sending items by VPP is not affordable either by a customer or by a seller. By introducing new service called SP-COD, India Post is targeting online marketing. The cost of sending article by COD will be comparatively cheap and it will have accurate track and trace facility. It will be a close substitute and serious threat for Couriers’COD service. At the same time market reach of online shops can be extended to rural areas where there is no network for courier services. By using the SP-COD service of India Post, online shops are using the vast network of India Post and thereby they can send items to any corner of the country. Now online shopping is limited to the people who are living in the town areas because the facility is based on the service area of courier companies.
India Post’s Cash-On-Delivery
service will begin nearly in all Post Offices. Some shops have already been
signed agreement with India Post for sending article through SP-COD. New
versions of Software including the feature of COD have already been released by
CEPT Mysore. First and second phase of testing have been completed successfully
in selected locations.
Another important area in which
the India Post has to put more care is the handling of goods sent through COD
service because these goods cannot be handled likes traditional mail items.
Most of the items purchased through online shopping would be fragile so utmost
care should be given while handling these goods. India Post is a big failure in
this aspect so they will have to take much effort to deliver the goods in good
condition. If India Post succeeds in this new service, it will lead to a new revolution
of online shopping. Let us wait and see.
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