New Delhi: E-commerce firm Paytm is starting a new service 'Fastest Expert Delivery' that will ensure that products are delivered within two hours from receiving the orders from customers.
The online shopping portal is planning to make an initial investment of Rs 100 crore to start this service and expecting to garner an additional revenue of Rs 4,000 crore in next one year from this platform.
"We are starting Fastest Expert Delivery (FED) programme with The MobileStore under which we will get mobile devices delivered to customer through an expert of the product within two hour of getting the order on our platform. We will spent Rs 100 crore in the next six months to popularise it," Paytm Associate Vice President Amit Bagaria told PTI.
Under this programme, the expert delivering the product will also be able to demonstrate the features of the product purchased by the customer, he said.
"This is the first innovative delivery strategy which will not require us to invest on logistics as we will use their logistics to reach out to the customers. This is a mix of online and offline business where we expect many brands to come on board and increase value of the offering," Mr Bagaria said.
The MobileStore currently has over 550 outlets across 100 cities in India. This initiative with Paytm will cover 465 stores in 72 cities and offer consumers the perfect blend of online and offline retail.
The company has plans to extend this service to other product categories as well like washing machine, refrigerator and air conditions.
"While this model will enhance trust of customers towards online business, it will also generate business and savings for traditional retailers. We expect to generate additional revenue of over Rs 4,000 crore in a year from this model," Mr Bagaria said.
When asked about the business benefit the offline retailer will get by selling the product at online cost, Mr Bagaria said that traditional retail stores are required to spend a fix cost to operate their shops and with this partnership their sales will increase but not the fix cost.
"With increase in sales volume, they will be able to pass on the benefit to the customers. Also, products will get tested before the customers on their doorstep, so we believe it will push up the sales," Mr Bagaria added.