Fetise tie up with Gharpay and introduce innovating new payment option
Online PR News – 20-January-2012 – – Mumbai, January 17th 2012: Fetise, exclusive online shopping portal for men and one of the leading e-commerce portals has taken an unprecedented step of collaborating with “Gharpay” – a doorstep cash payment network company to introduce “Cash Before Delivery” model. E-commerce Companies are looking at different ways and means to improve their working capital and cash flow which has given rise to “Cash before Delivery”. This novel idea might just be the silver lining for the e-commerce sites to improve their cash flow and working capital that is needed to run the business and keep it afloat.
The team from Fetise has done a lot of research before coming up with the idea of “Cash Before Delivery” or “CBD”. It is an advance payment option that Fetise is offering its customers to pay for the goods bought online. “We're happy to see Fetise's innovation of Cash Before Delivery (CBD) as a method to get the best of both worlds - to allow those without plastic money to get the benefits of online shopping, as well as to reduce the overall cost to users by reducing the cost of returns or undelivered goods” said Mahesh Murthy, Founding Partner-SeedFund.
This is just another in a long line of innovations that the industry needs to form a financially prudent set of practices that allow e-commerce companies to be a profitable set of businesses. Currently, this service is rolled out in 14 cities and will soon be scaled up to pan India within three months time.
“The Cash on Delivery model is convenient for the customers however it is not really helping the e-commerce companies as some of the customers place an order online simply to test if the COD model really works and return the goods at the last minute. This behaviour is also giving a headache to the e-commerce companies as return orders convert into absolute inventory if not sold quickly.”said Abhishek Shah, CEO – Fetise.com.
India is not the US when it comes to e-commerce - you can't just copy-paste - companies have to create India-specific innovations to win in this market. Cash on Delivery (CoD) was one big innovation that allowed those without credit cards to use e-commerce sites. But CoD comes with its own set of issues, like returns of up to 35% in some cases and hence a loss to e-commerce sites.
Fetise has chosen a path that seems like a difficult option as they are more focused on the fundamentals of the company. This will improve the collections and provide the much needed cash for e-commerce companies that need cash to meet their day to day obligations.
“It is always better to provide CBD option to the customers for payments, as delivery standard on COD payments is not really working great for ecommerce companies today and lot of consumer lose interest of buying till the time actual product is reached to them. As an ecommerce company Fetise will always look towards building a great efficiency and profit making venture. CBD can change a look of ecommerce industry, we are going live with professional companies who can explore and serve CBD payment option efficiently. This will help customers & Fetise for convenient shopping experience.” as said by Mr. Manoj Jaiswal who heads the SCM at Fetise. He has vast experience of the domain having worked with Future Group, Seventy mm, Bluedart and Aramax.
Fetise is India’s first and largest premier online outlet, founded by four young and enthusiastic individuals who wanted to transform the way Indian men shopped. It is the idea of launching a platform where men could meet all their shopping needs and the team effort of all the co-founders that gave birth to “Fetise”. Fetise is exclusively dedicated for fashionable “MEN” aged between 25-40 years. It offers luxury designer clothes, shoes, personal care, fragrances and accessories with as high as 80% discount to its members. Fetise initiated the operations in March 2011 and already have 750,000 registered users and getting 60,000 hits per day. The company has already opened offices in Mumbai and Delhi and intent to open a new office in Bangalore in next quarter.