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Walmart-owned e-commerce firm says option would encourage pre-paid transactions and reduce cash on delivery

Flipkart has launched a new payment method that lets customers pay some amount for a product and the balance on delivery, aiming to reduce returns and cancellations.

The Walmart-claimed web-based business monster, in an email to dealers, said ‘Part-Payment’ would energize prepaid transactions. Clients can pay the rest of the sum in real money when an item is conveyed or either by the online transactions. The rate card will continue as before for ‘part payment’ orders.

Web-based business sites allow clients paid ahead of time, post-paid (money down) or EMI (equated monthly installment) as choices to buy items. Most clients pick money down (CoD), which brings about higher units or GMV (net product esteem) however hazards organizations a higher danger of undoings.

Flipkart told vendors ‘Part-Payment’ would assist them with getting higher GMV development and decrease undoings. The organization, which this week got a $1.2-billion speculation from Walmart, works with more than 200,000 dealers and 250,000 small venders, for example, craftsmen, weavers, and experts.

Specialists state that the COD technique has been a significant reason for counterfeit purchasing and has prompted higher undoings and returns which has expanded coordination costs for the web-based business organizations.

All India Online Vendors Association (AIOVA), an alliance of web-based business merchants, said on Twitter that it had been upholding this technique throughout recent years. “Will different commercial centers follow this move?” said AIOVA on Twitter. It said this is an initial phase in making web-based business totally prepaid like it is in the US and EU.

“This move can prompt a 2-3 percent decrease in costs for buyers as at present misfortunes of such undelivered orders were considered as an expense,” said AIOVA.

Flipkart as of late outperformed 1.5 billion visits for each month and announced 45 percent development in monthly dynamic clients and 30 percent development in transactions per client for FY20. It offers 150 million items across in excess of 80 classifications. The firm had spearheaded client-driven administrations, for example, money down, no-cost EMI, and simple returns.