Painful Reality Behind India Post COD Services

Painful Reality Behind India Post COD Services

Thousands of products from e-commerce companies such as Amazon, Snapdeal, Flipkart, HomeShop18, Shopclues, Naptol and Yepme are reaching the remotest corners of India everyday, owing to their last-mile partnership with India Post, the government-operated postal network. On its part, India Post transacted business worth Rs 500 crore in cash-on-delivery alone for e-commerce players in 2014-15. Its revenue from this business rose from Rs 20 crore in 2012-13 to Rs 100 crore in 2013-14. But that’s just one side of the story.

To reach as many customers as possible at the fastest pace, even if it means getting drones to do the job, online retailers are learnt to be coping with the infrastructure hurdles of India Post. In fact, many leading companies are said to be directly in touch with Union minister of communications, Ravi Shankar Prasad, as well as senior bureaucrats in the ministry, to resolve last-mile issues.

While e-commerce companies tied up with India Post to reach India’s interiors and access pin codes that no courier company could, this has helped them only in a limited manner. On bicycles, India Post delivery men hardly match courier boys on motorbikes, who are faster and are also able to carry heavier parcels. Some postmen have to walk on rough terrains to reach distant addresses with parcels containing anything from mobile phones and apparel to fancy accessories and kitchenware.

A senior Snapdeal executive told, “As most of the India Post team uses bicycles, we have ensured products weighing less than five kg are routed through them for delivery.” Against that, a courier delivery boy often carries parcels 10 times the size, according to industry sources. An Amazon spokesperson said, “We appreciate and understand that the last-mile delivery methodology of India Post is mostly on bicycles and we are in discussions with India Post to come up with a solution/delivery methodology for large-sized Amazon packages.”

Flipkart did not respond to a questionnaire on the issue.

An official at India Post said the department was gearing up for the challenges and infrastructure was being upgraded. The department has already generated substantial revenue from its tie-up with e-commerce companies. While there’s no word yet on replacing bicycles with motorbikes and on whether the current India Post delivery staff, typically much older than those employed by private courier companies, are ready for the change, the official said logistics could be outsourced to a third party for delivery of goods, depending on volume.

Currently, the slow mode of sending parcels via India Post to pin codes unheard of is upsetting the sales targets of top e-commerce companies, for which every missed delivery could translate into a lower GMV (gross merchandise volume) and valuation. Also, it could mean missing the next round of funding from a marquee investor.

There are other issues, too. For instance, a Bengaluru-based online retailer-cum-stylist had partnered India Post in 2013. However, according to its co-founder, the two-year-old company had to discontinue the arrangement after it was found postmen were seeking money from customers for deliveries to remote areas such those in the Northeast. “Such incidents are serious enough to malign the reputation of a company,” he said.

Another challenge is the India Post delivery team doesn’t get any volume-based incentive because it’s a government organisation.

On the other hand, private courier companies were often enthused by such offers, an official said.

The fact that 70-80 per cent of orders for companies such as Flipkart and Snapdeal are from non-metro areas shows how critical it is for them to compete in the remotest parts of India. Amazon, for example, took pride in saying it had delivered a parcel to pin code 790002 — a destination called Balemu in Arunachal Pradesh’s West Kameng district.

The dark side of the e-commerce revolution is equally real. A recent Wall Street Journal report had highlighted the plight of courier boys carrying parcels weighing 23-46 kg in large backpacks day after day, all for a monthly salary of less than Rs 10,000. “This low-tech army of urban sherpas hauls bags of online purchases down narrow alleys and up flights of stairs, lugging everything from laser printers and kitchen appliances to cans of Coca-Cola for their country’s burgeoning consumer class,” the report had said.

 

Source:http://www.closevoice.com

Courtesy:http://potools.blogspot.in/ 

 

 

BSNL Offers Free Missed Call Alert Service (MCA) to All Mobile Customers

India’s National Telecom backbone Bharat Sanchar Nigam Limited (BSNL) provides Missed Call Alert (MCA) service. This service (MCA) is Free to all BSNL Mobile Customers except those from North Zone. Missed Call Alert Service is a Value Added Service which allows a BSNL Prepaid or Postpaid Mobile Customer to retrieve their Missed Call details via SMS, when the customer is in out of coverage area or when the users mobile runs out of battery.

BSNL Missed Call Alert (MCA) service will inform the mobile customer about the details of their missed calls such as the call timings, the number of missed calls and thereby helping them to call back and get in touch. BSNL provides Missed Call Alert Sevice Free of cost to all BSNL Mobile Customers except North Zone.

Procedure for Activation of BSNL Missed Call Alert (MCA) Service

To activate Free Missed Call Alert service,BSNL customers may 'Divert Voice Calls when Out of Coverage Area' to the number '+9117010'.

How to Divert Voice Calls for BSNL Missed Call Alert Service 

• Go to Settings
• Select : Call settings
• Select : Call divert/Call Forward
• Select : 'Divert when Out of Coverage Area' (Options may differ from phone to phone )
• Type the Number +9117010
• Save the settings

Some handsets allows the customers to activate the Missed Call Alert(MCA) Service by  dialing the code: **62*+9117010#

Procedure for De-Activation of BSNL Missed Call Alert (MCA)

• Go to Settings
• Select : Call settings
• Select : Call divert / Call Forward
• Select : When Unreachable
• Delete the number +9117010
• Save the settings

Some handsets allows the customers to de-activate the Missed Call Alert(MCA) Service by  dialing the code: ##002#

Private operators are currently charging their customers at the rate of Rs.30 / month for providing Missed Call Alert Service. BSNL Missed Call Alert Service is available to North Zone Customers at a nominal cost of Rs.15 / month. The activation / de-activation procedures are common for all BSNL customers irrespective of their Telecom Circle / Zone.

Readers, have you activated this Free Missed Call Alert service from BSNL? Just compare similar service, which was offered b

 

FRIDAY, 15 JANUARY 2016 68th Indian Army Day: Some interesting facts about the Indian Army

Army Day is celebrated on January 15, every year to commemorate the day when Lieutenant General K. M. Cariappa took over as Commander-in-Chief of India on January 1949. He took over the position from General Sir Francis Butcher.

Some interesting facts about the Indian Army:

A great example of selfless service and brotherhood and above all, love for the country is what the Indian Army is all about.

Source : http://indiatoday.intoday.in

 

 

Achievements and Success of Department of Posts

Average business provided by major players is as follows:

Amazon: ~3 Lakh articles per month (peak 6 Lakhs)

Snapdeal : 80000 articles per month

Myntra : 50000 articles per month

Flipkart : 30000 articles per month

Yepme : 60000 articles per month

Parcel Revenue : Rs. 92.35 Crores till Nov 2015

Speed Post revenue : Rs. 1023 Cr till Nov 2015 (~10% eCommerce business) 

COD remittances : Total >Rs. 1000 Cr till Dec 15 Profile of Revenue Stream (in Rs Crore)
Products	2013-14	2014-15	2015-16(Upto Nov)
Speed Post	1372.2	1495.2	1023.5
Business Post	1029.5	962.5	553.7
Bill Mail Post	103.0	103.6	62.4
Express Parcel Post	77.6	64.3	38.0
Retail Post	70.2	84.4	51.5
Sale of Stamps	670.7	576.2	345.7
Logistics Post	15.3	24.4	10.7
Money Orders	606.9	632.3	331.9
Others	869.8	1023.0	415.3
Revenue from P.O.	4815.2	4966.0	2832.6
SBCC	5915.3	6670.0	5092.5
Total Revenue	10730.4	11636.0	7925.1

 · Revenue Growth  

· Speed Post revenue growth in the current FY is more than 16%. CAG report laid in Parliament on 8th May 2015 highlights that Speed Post is far better than private couriers, in terms of reach, assured delivery and delivery time.  

– Department has tied-up with more than 400 e-commerce agencies including Flipkart, Snapdeal, Amazon, YepMe, Shopclues etc for delivering e-Commerce pre-paid as well as Cash on Delivery (CoD) orders. Amazon is the largest business partner in e-Commerce. Rs 1000 Crore COD collection by Department of Posts so far and this figure this likely to cross Rs 1500 Crores by the end of the current FY.  

– Parcel revenue which registered 2% decline in 2013-14, registered 37% growth in 2014-15. 117% growth in parcel revenue till 31st October 2015 in the current FY. 

· Digital India  

– Core Banking Solution (CBS) rolled out in 12441 Post Offices along with 300 ATMs. CBS shall be rolled-out in all 25,000 Departmental POs along with 1000 ATMs by 31st March 2016.  

– Core Insurance Solution (CIS) rolled out in 23,792 Post Offices and shall be rolled out in all 25,000 Departmental POs by 31st March 2016.  

– Supply of solar powered, biometric hand-held devices with connectivity to about 20,000 rural Branch Post Offices shall be completed by 31st March 2016. All 130,000 rural post offices would be provided with hand-held devices by March 2017.  

• Promoting Financial Inclusion 

– India Post Payments Bank (IPPB)- RBI has accorded in-principle approval for setting up of Department of Posts Payments Bank on 7th September 2015. IPPB shall be set up by March 2017 and shall leverage the physical and IT infrastructure of the Post office, using low-cost, low-risk, technology based solutions to extend access to formal banking especially in rural, un-banked and under-banked areas, including MSMEs, small entrepreneurs, Village Panchayats & SHGs 

– Number of Post Office Savings accounts increased from 30.86 Crore to 33.60 Crore and total deposits of POSB accounts and Cash Certificates to Rs 6.5 Lakh Crore.  

– More than 80 lakh Sukanya Samriddhi Yojana accounts opened with a cumulative investment of more than Rs 2900 Crore since launch on 22nd January 2015.  

– More than 1.84 Crore Kisan Vikas Patras sold, attracting an investment of more than Rs 16,429 Crore since launch on 18th November 2014.  

– Launch of PM Suraksha Bima Yojana and PM Jeewan Jyoti Yojana for Post Office Savings Bank account holders in CBS Post Offices. So far, more than 57,000 policies have been sold to POSB customers.  

– Increase in maximum sum assured in Postal Life Insurance from Rs 20 Lakh to Rs 50 lakh and for Rural PLI from Rs 5 lakh to Rs 10 lakh in order to provide more investment opportunities to customers and also increase claim amount to nominees in case of death. 

ClickHere to view details

 

 

 

PPF, NSC rates to be cut; bank FDs may fetch lower interest

The government is set to reduce interest rates on small savings products such as public provident fund and National Savings Certificate over the next few days - a move that will impact returns on your bank fixed deposits but also pave the way for banks to pare lending rates in the coming months and reduce the EMI burden.

The new formula will see small savings rates linked to returns on government securities of comparable maturity, with the reduction expected to be up to 50 basis points (100 basis points equal a percentage point). The finance ministry is finalizing product-specific rates and sources said the impact would be higher in case of maturity period of less than five years. There are indications that senior citizens and women will be protected with products such as the Sukanya Samriddhi Yojana spared the the axe, at least for the moment. 

The new rates are expected to be notified over the next few days with the government set to announce quarterly revision instead of an annual reset, which is the norm currently, sources said. 

Banks are expected to follow the small savings rate cut with lower fixed deposit rates, which over a period of a few months may translate into lower lending rates. In the past, lenders have been reluctant to pass on the benefit of lower rates to borrowers. 

The Reserve Bank of India and banks have been seeking a reduction in small savings rates, arguing that PPF and other products offered higher returns when compared with fixed deposits, resulting in a flight of funds to the government schemes. 

As a result, banks have been forced to maintain higher deposit rates, making it difficult for them to pass on the benefits of lower policy rates. Bankers have said higher small savings rates have meant that lending rates have been cut by a lower extent compared to RBI's policy rate reduction of 125 basis points last year. 

Although the move may trigger a fall in returns on your savings, it is seen as a reform move by the government, which recently announced a plan to end subsidies to the high-income segment. The reduction also comes at a time when the middle class has become more comfortable investing in debt and equity mutual funds, which over the past decade have emerged as an attractive savings tool. 

Source : The Economic Times