India Post Collects Over Rs. 280 Crores
Within a 12 months of becoming a member of the e-commerce bandwagon as a distribution channel, govt entity India put up has transacted business price Rs. 280 crores in the cash-on-supply (cod) segment by myself for corporations like Flipkart, Snapdeal and Amazon.
Whereas the amount of earnings generated for itself may no longer be ascertained, govt officials mentioned India put up could be very interested in creating its e-commerce related services as a huge revenue variation going in advance.
“India post accumulated over Rs. 280 crores from customers and gave it to e-commerce firms, when you consider that cod facility used to be started in December 2013. The division with its big community can function the most effective agency for now not just delivering merchandise, but also amassing cash,” a executive respectable stated.
However, this is a small chunk of the overall market measurement for e-commerce in India, which runs into billions of bucks already and is growing at a fast % once a year.
Cod has emerged as one of the most sought after products and services for e-commerce entities and 50-75 % of orders are placed with quite a lot of on-line outlets with this cost option, whereas the remaining opt for credit card or financial institution payments.
In India, shoppers tend to favor cod as the net fee modes are but to trap up in lots of parts of the united states of america whereas many people aren’t ok with boost funds for products bought on-line.
India public’s cash handling services like core banking options, money transfer and a robust account machine can further assist e-commerce firms in accumulating cash from customers in urban as well as rural areas, the official stated.
India Post Collects Over Rs. 280 Crores via Cash on Delivery for E-Commerce
India put up has about 1.55 lakh post places of work, making it the arena’s greatest postal network. On a regular, a submit office serves 21.21 sq km space and about 7,175 folks.
Some other reliable stated various e-commerce corporations have been the usage of India Posts cod facility because it was offered. Corporations like Flipkart, Snapdeal, Amazon, Shop clues, Naaptol, Telebrands and Homeshop18 are some of them.
India post has set up reserving counters in the premises of some customers like Amazon and Naaptol, while for Snapdeal it is exploring setting up of e-commerce booking kiosks in put up place of work locations.
Communications and IT Minister Ravi Shankar Prasad has also said previously that India submit is most fitted to offer delivery services and products to e-commerce avid gamers, given its large reach throughout rural, city and semi-urban areas.
The Minister has directed officials from the division of Posts to focus on alternatives in e-commerce sector.
India put up can also be ramping up its infrastructure to clutch an incredible chunk of the distribution, supply or logistics, so as to contact about USD 9 billion (roughly Rs. 56,016 crores) by means of 2021.
In line with market consultants, e-commerce industry in India used to be about USD 6 billion (roughly Rs. 37,344 crores) in price in 2012 and is expected to the touch USD 76 billion (roughly Rs. 4,73,024 crores) via 2021 of which distribution, delivery and logistics constitutes round 12 %.