Flipkart starts part payment method to reduce cancellations, order returns
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-owned e-commerce giant, in an email to sellers, said ‘Part-Payment’ would encourage pre-paid transactions. Customers can pay the remaining amount in cash when a product is delivered or either by online transaction. The rate card will remain the same for 'part payment' orders. E-commerce websites allow customers pre-paid, post-paid (cash on delivery) or EMI (equated monthly instalment) as options to purchase products. Most customers choose cash on delivery (CoD), which results in higher units or GMV (gross merchandise value) but risks companies a higher risk of cancellations. Flipkart told sellers ‘Part-Payment’ would help them get higher GMV growth and reduce cancellations. The company, which this week received a $1.2-billion investment from Walmart, works with over 200,000 sellers and 250,0...