India Post Earned 280 Crore Through Cash On Delivery For Flipkart, Snapdeal and others
When India Post joined the e-commerce as a distribution channel, they have never even thought how much successful it will be. But it seems they took a right path. India post revealed that through Cash-on-Delivery for Flipkart, Snapdeal and Amazon, they have collected a hefty earning revenue that goes up to 280 crore.
Though the amount disclosed is not audited, however, India Post is looking forward to set this as a major revenue model.
An India Post official said the following:
“India Post collected over Rs 280 crore from consumers and gave it to e-commerce firms, since CoD facility was started in December 2013. The department with its huge network can serve as the best agency for not just delivering products, but also collecting money.”
The amount disclosed is a small fraction as the market size of e-commerce runs into billions of dollars every month. Cash-on-Delivery has become the primary mode of payment for e-commerce services as up to 75% of buyers opt for this payment model and rest choose credit / debit cards for payment.
India post is the world’s largest postal network with 1.55 lakh post offices and on an average a post office delivers service to approximately 7,175 people. To add up more value to its service for e-retailers, India Post has set up booking counters in the premises of Amazon and Naaptol.
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