Fetise, an online shopping portal for men has partnered with
“Cash Before Delivery” or “CBD” is an advance payment option that Fetise is offering its customers to pay for the goods bought online. That is, reach out to consumers who are still not convinced buying online. And importantly, a model like this also helps improve cash flow and working capital.
Currently, this service is rolled out in 14 cities and will soon be scaled up to pan India within three months time.
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.
An interesting concept, but one wonders why would they not partner with ideacts’ erupee platform, which enables customers to shop online simply by using cash without having to credit/debit card details or net banking account details.
Unless there is a strong brand affinity, would you give CBD model a try?
Aside, Fetise raised $5mn from Seedfund in the month of December 2011.