Customer Loyalty and Excessive Online Discounts

Customers today look for offers online on a daily basis and it has become a habit. The problem is that the companies who started this are now moving into loses while acquiring customers.

Customer Returns are making companies cripple

The major issue that e-commerce companies are facing is :

• Customer Returns: Due to the poor quality and juggling mentality of Indian customers. 
• 30 days Return Policy- No questions asked: Well if we are buying something offline do we have a 30 days return policy?The answer is NO. 
• Payout Policy to Vendor Companies: Due to the above policies a lot of vendors are having success stories but more than that people have shut their shops and are not interested in selling online.
• Cash on Delivery: It seems to be easy but if you are ordering for a bigger ticket size and you are not residing in one of the Tier I cities then probably the order wont be taken. Moreover there is a threat at a lot of places and logistics companies have stopped working in states few states because of the threat on COD orders. A lot of orders are not received by the customers when delivery boys call them up. So COD is the most risky segment.
• Customer is not loyal: If you are looking for a loyal customer online you won't find that because he/ she is only attracted to sites which gives more discounts. 
• Products Sold below the Manufacturing price: The issue is that we have seen in alot of cases that goods are sold below the manufacturing price because of the heavy discounts. Hyper Retailers have been into a menace since then.
• GST is on Hold: A centralized taxation would help in the pricing and moreover would help in a flat pricing in the country. Still the same has not been passed and is just on papers till date.

The above had been a ease at the customers end but a Menace for the Ecommerce companies and moreover it is not at all increasing the loyalty program for online shopping.