Interestingly, other e-marketplace operators like Flipkart and Amazon have not made any changes to their cap on CoD orders which is at Rs 50,000 and Rs 30,000, respectively
E-marketplace operator Snapdeal has reduced the limit for cash-on-delivery (CoD) transactions on its platform by over 60% in a bid to push more prepaid transactions and curb return of goods by customers.
A Snapdeal spokesperson told DNA Money that the CoD option has been discontinued for transactions beyond Rs 20,000.
"Earlier, the CoD cap was for transactions over Rs 50,000. However, it has been brought down by 60%. Accordingly, CoD order are restricted to Rs 20,000 thus making most of the high-value orders on our platform prepaid," the spokesperson said, adding that prepaid orders had much lesser salience of returns.
Interestingly, other e-marketplace operators like Flipkart and Amazon have not made any changes to their cap on CoD orders which is at Rs 50,000 and Rs 30,000, respectively. Flipkart and Amazon executives could not be reached for a comment on whether they would also reduce CoD limits.
The restrictions on CoD transactions, the Snapdeal spokesperson said was brought into effect sometime in mid-January to deal with increased number of frivolous purchases that were hurting the sellers big time.
Post demonetization, all e-marketplace operators had put a restriction on CoD owing due to the shortage of valid currency and change in the hands of the buyers.
However, the restrictions were removed as transactions started becoming prepaid and the cash scenario in the market also began improving.
"We believe that high-value orders should be prepaid and it is also good for both the e-marketplace as well as the sellers," said the spokesperson, adding that the percentage of prepaid transactions has been significantly increasing post demonetization.
To ease the concerns of the seller community, Snapdeal senior executives also met with Sanjay Thakur, president of eSellerSuraksha (eSS), an association of over 1,500 sellers from across the country, to hear out their grievances. The association had compiled and presented 121 disputed cases with the e-marketplace operator.
"There was no outstandings in terms of payment issues. They have (eSS) forwarded some cases to us which were discussed separately and are being looked at in terms of their genuineness. While some cases have been settled already others will get settled in the due course," said the spokesperson.
DNA Money has learnt that almost 50% of the cases have been discussed already and are likely to get resolved soon. The balance, according to Thakur, is being looked into, given the complications associated with them and a resolution will be offered once the issues get sorted out.
"We had a very productive meeting with Snapdeal management which is focused on growing business opportunities through progressive steps relating to reducing returns, increasing preference for prepaid orders and a smooth transition to the upcoming goods and services tax (GST) regime. We are very encouraged with the responsive and supportive engagement and look forward to mutually beneficial business growth," said Thakur.
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