In what is a first in the big ticket furniture category, the firm will offer COD payments of up to Rs 50,000 on high-ticket purchases at no additional cost as an introductory offer.
The move will enable Pepperfry, one of the few e-commerce firms to offer such a large ticket size in a COD format, to expand its operations to a larger consumer base.
Through this introduction, Pepperfry is looking to make high-value furniture transactions accessible to consumers in line with its target to enter 20 million homes by 2020.
The Goldman Sachs and Norwest Venture Partners backed firm is targeting 1 million customer transactions in the next three months through the new COD service till the conclusion of the festive season.
“The introduction of the COD option with an upper limit of up to Rs 50,000 offers more flexibility to our customers when purchasing furniture online and will be an ally for customers who are still apprehensive making digital payments. We understand that cash remains the most preferred medium of transaction for Indian consumers especially when it comes to high-ticket purchases. Therefore, we’re certain that it will act as a key differentiator for us in the furniture segment,” said Abhimanyu Lal, Chief Product Officer, Pepperfry.
The COD payment option is available across most products with a maximum cart value of Rs 49,999. For Pepperfry, its average order value on the furniture section is Rs 18, 000 to 20,000.
The Mumbai-based firm is looking to reach more diverse demographic consumer sets and secure market trust by making large ticket products accessible for payment on delivery. The COD service is available on its mobile site and app.
As Pepperfry step jumps its omnichannel network across the country through Pepperfry Studios that contribute 25-30% of the sales, a higher limit of COD payment is set to attract more consumers, the firm believes. It will act as a key differentiator in the furniture segment since Pepperfry is the only company offering COD option post furniture delivery.
Currently, the service is being offered only in Mumbai and Delhi NCR with plans to extend it to other cities soon.
