Ok here's the background of this amazing eCommerce anecdote. My sister had ordered a barbie set from BabyOye.com, one of the online toy retailers, for our niece's birthday some time back. Since she couldn't personally attend the birthday (she stays in the US), this gift was supposed to get delivered to me in Gurgaon. Now a couple of days before the actual delivery happened, I was woken up from my afternoon slumber by a phone call from a Mumbai land line number (might be the distribution centre) asking for my contact details. With half-closed eyes I confirmed that it was indeed me who was supposed to receive the package on the given address. I couldn't give him any more attention than a customary confirmation call would require. But that was before he said something that made me turn around in bed and asked him to 'come again?' The guy on the other side repeated himself. This is not verbatim, but it is effectively more-or-less what transpired between me and him.
'Sir, it's very unfortunate that I've to make this call.The company has had some issues with our product vendors.'
'Ok...?'
'Since the date you ordered the Barbie Set, our vendors have increased the prices from their end.'
'So...?'
"So, Sir the set you bought for Rs. 1250/- is now Rs 1500/-..."
''Oh..Kay....but I've already paid for it, haven't I?'
'Yes Sir, but it's a rare case where the prices increased immediately after you placed the order.'
'So, shouldn't it apply to those who buy from your site after the prices are refreshed online?'
'Sir, you've a point..but the company is helpless in this situation because of the sudden upping of prices by the product vendors.'
'So, what exactly is your point now?'
'Sir, it is requested that when you receive the package at your house, can you please pay the remaining amount to the delivery guy?'
"Hmmm....Ok, here's a thing. I don't mind paying you another 250 bucks. When I can buy 1200/- rupee toy, I can buy a 1500/- one too. It's not that I can't pay you. It's just that I dont want to pay you. I am just not convinced why I should.'
'Sir, I understand your point, but as I told you the company is bound by the prices it buys from its vendors....and moreover..'
"Ok, tell me something.... have you ever gone to a vegetable market to buy vegetables for yourself?'
'Sir?'
'I am asking you if you've ever gone to a vegetable market to buy vegetables?'
'Yes Sir, I've have'
'Has the vegetable vendor ever followed you back to your house and asked for another 50 rupees, just because from the time you actually bought the vegetables till the time you reached home, prices of onions, cauliflower and tomatoes had tripled - and you happen to buy two of those three? Has it ever happened?"
'No..Sir.'
'You know why? Because the Sabjiwala is a smart guy, who knows that he'll not just lose his customer for good but also not get paid anything for putting up this moronic argument.Therefore...', I told him in short, succinct manner, 'I too will pay the price I placed the order at. And NOT a penny more.'
He very obediently sought permission to discuss the matter further with his boss and revert at the earliest. He called me back in another 10 mins and told me that the team has decided to forgo the extra money I ‘owed’ to them and that I don’t have to pay anything more than I already have. I told him that it is indeed the right decision and hung up.
By now, I was wide awake and thinking how less a margin do these guys play with. All this talk of paying extra was nothing but horseshit - they just needed a few gullible customers to cover up for the guy who made this mess by not updating the online prices on time. May be they operated on a Marketplace model and didn't keep an inventory. But that doesn't mean you transfer your additional costs arising out of operational lapses over to your customers, AFTER they've made the purchase. But more importantly, WHY would an impressive e-Commerce site in a niche area (mind you, they're one of the decent ones in toy industry) have to stoop to such a level? WHO's the brainchild behind setting your customer care guys on calling spree to retrieve as much lost booty as possible? And WHY would you want to lose a customer (my sister was a first timer there) forever and inflict an irreparable brand damage to yourself for a petty 250 bucks?? WHY??
e-Commerce is not just about a swanky, trendy website offering the coolest stuff around at the best prices. It's also about delivery, trust and a good after taste of shopping.
Comment
Comment by Gaurav Thukral on May 30, 2012 at 1:31pm Hope babyoye learns from other players in the ecommerce space.
My experience with another ecommerce player Makemytrip (this was around 5 years back when Makemytrip was also in the initial stages) shows the difference between a customer oriented startup and profit oriented startups.
I was searching for the best prices for an air ticket from Bangalore to Delhi (during peak season around Diwali). Most of the websites were showing tickets above Rs 10k (normal prices at that time were around 5k). Indian Airlines website showed ticket price around Rs 14k.
To my surprise, MakeMyTrip showed the ticket price for the same flight to be Rs 4k (a whopping 10k less than what Indian Airlines showed on their website). Without wasting any time, I booked the ticket and paid Rs 4k to MakeMyTrip.
2 days later, I had a paper ticket in my hand and the cost mentioned on the same was Rs 14k.
As the credit card details were still not available to confirm if I had been charged Rs 4k, I called up the customer care team of MakeMyTrip and enquired abt the difference between the price shown on the website and the price mentioned on the ticket.
The reply received from the customer care team brought a big smile on my face. MakeMyTrip had paid the balance 10k to Indian Airlines because they had committed the ticket to me @ 4k (a technical glitch on their end had incorrectly displayed the 14k ticket as 4k).
Customer care at its best.
Comment by Abhimanyu on May 30, 2012 at 1:31pm @Rahul I was a little late in writing about this. The call probably came on 9th May. Call details on my phone go back only till 19th May. Also, just got off the phone with vodafone. They said they couldn't locate the number as there's no provision to get details of incoming calls except filing an FIR with the police.
Its babyoye's call. I am open to scrutinizing my call details if it helps in nailing the bugger
Comment by Alok 'Rodinhood' Kejriwal on May 30, 2012 at 12:30pm Thanks Abhimanyu for the feedback. So, you ARE certain that IT WAS BABYOYE.COM?
That is critical. I am sure that Babyoye will go into more details.
Comment by Abhimanyu on May 30, 2012 at 12:14pm
Comment by Devesh Tanna on May 30, 2012 at 11:55am Hi,
For all of you going gaga over Flipkart, let me share my experience with FK CS this morning.
I simply asked him - I am a customer in Mumbai, If a buy a certain product will you be able to give me Maharashtra billing as I would get VAT benefit. IF billed from out outside Maharashtra, it would be a CST billing and I would not get VAT input credit.
The CS spent the next 5 - 10 mins explaining that the price is all inclusive and the do not charge vat extra.
It is quite ridiculous that a company doing commerce and interstate business does not train its CS executives on VAT / CST.
So finally told him to just tell me where it will be billed from Mumbai, he said he need one day to confirm that.
What??????????????? Can't he just his supervisor?
I ended up getting a headache. Atleast on ebay, you have the location of the seller displayed upfront.
What is the use of having fulfillment centers all across, and no knowledgeable CS.
Devesh
Comment by Balachandar Muruganantham on May 29, 2012 at 9:08pm This is quite common. not just with ecommerce companies. even with government enterprise.
I booked a ticket in IRCTC in march 2012 for journey after april 2012 in Rajadhani express. The ticket costs around X amount. since it was applied in budget, every one was forced to pay extra Y amount.
This is not wrong. what is wrong is, if you are not informing the customer about the change in price.
- bala
Chennaishopping.com
Comment by Himanshu Agarwal on May 29, 2012 at 8:06pm On 25th Jan 2012, I ordered a book from infibeam.com. I got a Infibeam Purchase Confirmation email bearing the order no. 8585282 and I paid for the order by Credit Card (CC). Since I get transaction notifications of my CC on my cell, I did not get one for this transaction. i thought maybe, the bank does it in batches and there may be some delay in my account being debited. Later I forgot. After a week when I still did not get the book, I checked infibeam with my order # and man...the order was cancelled. It's true that my account did not get debited...but at least have some workflow in place that triggers a mail on suo moto cancellations.
Reason I ditched other e-tailers for infibeam was because it was cheap...but after this experience I realize, they indeed are 'CHEAP'.
Flipkart comes at a premium, but given the positive BUZZ surrounding the brand, I won't mind paying a premium for a guaranteed delivery and a two way interaction.
Unfortunately, e-com is not about technology, but establishing positive brand connect, which cannot happen by buying spots/banners on mass media...one needs to put their heart behind the whole thing!
Comment by Abhimanyu on May 29, 2012 at 7:02pm True Nayan. I think, most if not all eComm players are myopic, especially the ones that have cropped up in last yr and a half. And you'll see that the amount of traffic and online sales on these sites is indirectly proportional to level of customer care and post-sale service. More the traffic, more they take the customer for granted. Compare that with a flipkart or amazon - more traffic, more sales, more trust and more word-of-mouth..and even more sales!! But thats too long a haul for these sprinters here.
Comment by Devesh Tanna on May 29, 2012 at 6:51pm Any smart site would forgo such a small amount. If the difference was say like 10000 and 1000 (forgot to add one zero while uploading), it is obvious that such an order cannot be fulfilled.
Comment by Nayan Khinvasara on May 29, 2012 at 6:43pm E-comm websites leave a lot to be desired. Something similar happened when booking flight tickets at Via.com. My payment went through but I received an email that the tickets are pending confirmation, This was shortly followed up by a call from heir customer care saying that the prices have gone up by more than Rs.2000 per ticket. On asking him why the true price is not displayed on the website, he said that it takes some time to refresh. On pressing, he clarified that 'some time' can be up to 15 minutes.
3 hours later, the same lower price was being displayed for the same tickets. Needless to say, I ended up buying from a competitor.
If e-comm sites want to attract buyers (and get rid of the pain of COD), they need to earn the customer's trust.
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