Yesterday in a press release Snapdeal announced that they would be delivering new Rs 2000 notes to customers at their doorstep. The ecommerce startup would be charging a nominal fee of Rs 1 for each order for cash. This pilot service is called ‘Cash@Home’and it is launched only in Bengaluru and Gurgaon. This is good news for online buyers, since they do not need to stand outside bank or an ATM to get cash.
There are multiple reports available on the web that says Snapdeal’s pilot project is very good. The dark side of this is that Snapdeal has resorted to such initiatives to attract customers onto their website. I spoke to a Hyderabad eCommerce startup about this scenario. The startup says that they maintain a blog only so that they can pull traffic from the blog to their ecomm site organically. Similarly this is Snapdeal’s move on making potential customers familiar with their services, which in turn will convert to customers in time. Read more News about Snapdeal.
In September Snapdeal spent Rs 200 crore on their new marketing campaign. This included new promo songs, new logo design, change of colour in the logo, and more. Well red is suppose to be a soothing colour for Asians says DK, industry expert who runs a popular blog site that helps people achieving their life goals. This could have been one reason for Snapdeal to change logo colour.
As per similar web, post the Rs 200 crore campaigns the web site traffic boosted by 40% but a month after that it saw a reduction in traffic by 40%. Snapdeal needed to do something to improve their business and justify the Rs 200 crore project. Popular investors like Mahesh Murthy said that this project is like “Painting a Titanic”. Read details of Snapdeal 200 crore logo.
Snapdeal will be using the cash collected from orders to deliver cash to other customers. Currently they are delivering only Rs 2000. The customer would need to swipe his ATM card in the delivery executive’s POS machine post delivery. Read Indian Startup News.