E-commerce players in India are trying every possible method to woo customers. Besides discounts, cash on delivery (COD) has been developed as a mechanism to enhance consumer’s and customer’s trust in the e-commerce business model.
Cash on delivery has an obvious advantage that consumers in India are more comfortable with the same. However, it has a major drawback as well .Cash on delivery results in delayed payments, higher rejection rates and longer turnaround.
Cash on delivery method was devised at a time when there was limited knowledge and little awareness about e-commerce in India. Similarly, sticking to cash on delivery was also required as there was not much broadband penetration, technological access and technology awareness among Indian masses.
Now things have changed and sticking to the old cash on delivery method may not be productive in the long run. Perry4Law and Perry4Law Techno Legal Base (PTLB) believe that in an ideal e-commerce model, cash on delivery percentage should not be more than 20% of the total e-commerce sales and revenues. If it is more than 20%, additional costs and unintended inefficiencies may creep in.
While public awareness about both e-commerce and technology use may have increased yet Indian e-commerce industry is suffering from a serious drawback. We have no dedicated e-commerce laws and regulations in India. E-commerce legal issues are still governed by the information technology act, 2000 (IT Act 2000) that is the cyber law of India. We need a dedicated e-commerce law in India to meet the growing techno legal challenges of e-commerce.
A sound legal framework is also required as future shift from cash on delivery to online payments would raise many techno legal issues that Indian e-commerce players have yet to face. A new e-commerce legal framework for India must be established as soon as possible.
E-commerce platforms can be greatly benefited if they have an internal or affiliated dispute resolution mechanism at place. For example, use of online dispute resolution (ODR) in India can be a good option at e-commerce platforms. In fact, use of ODR for e-commerce disputes resolution is the latest trend word over.
We at Perry4Law and PTLB are managing the exclusive techno legal e-courts centre and ODR centre of India where techno legal disputes of e-commerce platforms, corporate houses, individuals, international organisations, etc are resolved.
If you are an e-commerce platform that wishes to safeguard your techno legal interests, feel free to contact us in this regard with your proposal. We would take care of all your techno legal issues pertaining to e-commerce.
