Flipkart, Amazon, Paytm Can Ban You From CoD Orders; Find Out Why They Will Do This! (And How?)

If you’re someone who prefers the cash on delivery (COD) mode of payment for online shopping, you need to be sure of your track record. 

Yes, Flipkart, Amazon, and Paytm will no longer allow you to opt for the COD mode if you come up as a defaulter.

Read on and find out the reason COD will no longer be an option!

Flipkart And Amazon In Loss; Is COD the Reason Behind This? 

Flipkart and Amazon have decided that online shoppers who opt for cash on delivery mode of payment and fail to receive deliveries with not be allowed to choose the mode if they keep up with this action. 

Flipkart, Amazon and the other e-tailers have revealed that the claim that people who choose COD mode of payment often take the option for granted, and this results in huge losses for the companies. As per a logistics company’s founder and CEO, these undelivered parcels cost the company any price from Rs. 50 to Rs. 150 depending on the size of the parcel. 

A study was conducted by NARVAR, a company based out of Chicago, which stated that of all the orders made at Amazon, Flipkart and other such e-commerce entities, as much as 65% of them are COD. Of this 65 %, about 33% of orders go undelivered, which leads to added costs to the e-commerce companies. 

It also revealed the fact that one-third of COD orders from online shopping sites are undelivered. 

In the report, Narvar’s chief technology officer (CTO) Ram Ravichandran says, “Being a very high COD market, non-deliveries and returns are major problems for Indian retailers. It is a massive challenge and loss of income for retailers. The idea is to incentivise people to move beyond COD.”

E-Commerce Companies To Install Software To Rate Customers’ Behavior And Decide

In order to curb this irresponsible behavior, the e-commerce companies have decided to put some particular software in place which will identify such shoppers and their actions will be reflected. Also, they will not be allowed to choose the COD option for their shopping thereafter. 

This software is intended to classify the behavior of the customers and the data that will be collected will help the supplier to make the decision whether COD should be made available to the customer or not.