Why would any e-Commerce site do this to itself?

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.  

 

Views: 3478

Tags: Blunders, best, eCommerce, practices

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Comment by Sanchita Dutta on August 24, 2012 at 1:10am

just couldnt resist reading all comments right from the first one to the last!! i feel that call was a disaster, and perhaps some brainstorming must have gone into how to respond to this at babyoye. they did apologise profusely but kind of messed it up by trying to give differential pricing theory at different locations, primarily because EVEN IF ITS TRUE, under the circumstances people will not believe it and more egg will fall on the face ...

this reminds me of the importance of keeping things short crisp and to the point. done a mistake? Say Sorry, Done a big mistake, Say Very Sorry and compensate if you can ...

really liked that 4K/14K makemytrip example!! used to use it before changing loyalties to Yatra... has forced me to consider changing loyalties again....

Kamal was too harsh lets accept it, i mean it appeared someone from oye would have got bashed up if he was anywhere around!! he sounded really upset and angry! upset is fine, but one must control thier anger. it always brings the worst in you...while his heart and intent were in right place, but i guess, even if someone were to cause some mistake and hurting me, i would b upset but not so angry that i run to hosp for BP check.. i mean i would end up going if i continue to remain so angry ...

What Tanvi brought out is so true... imagine if money was asked from the person to be gifted... it would have UNPARDONABLE, really, i would never have gone to them again.. now i still would not go now. to that end, yes in this business, customer service needs to be kept higher than myopic view on profits.

Comment by Himanshu Agarwal on June 8, 2012 at 10:27am

Hi Abhimanyu,

Thanks for the revert. Have shared the post on my LI profile.

Will also urge the members of this forum, if they share the same sentiment, to share the below URL  on their social profiles.

http://therodinhoods.com/profiles/blog/show?id=6328457%3ABlogPost%3...

Comment by Abhimanyu on June 7, 2012 at 10:35pm

Himanshu, the business model of Babyoye is actually based on the idea that "Bade bade deshon mein chhoti-chhoti baatein hoti rehti hein"....For them, screwing up with a minuscule portion of this 'super bada' indian customer base is a chhoti cheez. They have moved on to other needy, ignorant customers. And there's no pressing need for them to revert on this, unless of course this post in some way comes back to haunt them in a 'bada' way.
Therefore, share, RT, FB, email it... in larger public interest. Little air is all one needs to keep the fire alive.
Thanks for stopping by.

Comment by Himanshu Agarwal on June 7, 2012 at 3:46pm

Hi Abhimanyu...

Have been following this discussion thread. Any revert from Baby Oye?

Comment by Alok 'Rodinhood' Kejriwal on June 4, 2012 at 4:12pm

Tanvi,

Many many thanks for this awesome and really hard hitting comment!

Comment by Abhimanyu on May 31, 2012 at 6:33pm

A word for Kamal. He may have sounded a little aggressive to some fellow Rodinhooders here, but I completely support his stand. Its the intent of babyoye that he's refering to and it doesn't look all that good. But i guess its never too easy to explain yourselves when caught with your pants down. I wish babyoye well in future and hope this incident proves to be a turning point in the way they look at their customer support guidelines.

But its left a sour taste and only a "Galdi ho gayi, maaf kar do" kind of a statement can work in their favour.
Or else... give an explanation that makes sense. 
 

Comment by Abhimanyu on May 31, 2012 at 6:02pm

@Devesh A sale is complete on two counts - payment and delivery, not either but both. My part of purchase was over when I paid. Since eComm is not brick and mortar, delivery takes time and hence, the onus is on seller to complete the sale from his side by delivering - exactly what I ordered and for exactly the amount i paid.
The same would be apply on me, if I choose Cash on Delivery...the onus then would be on me to show up and pay the amount i promised, when the package is delivered.

Vegetable vendor analogy applies here. Because its about honoring your prices, more than anything else. You are buying barbie sets from etailers, not futures and options.

Comment by Alok 'Rodinhood' Kejriwal on May 31, 2012 at 5:21pm

Abhimanyu, I agree with you and completely side with Kamal. This is a big screw up.

Day 1 they should have apologized to you and fired the guy down the line.

This is adding fuel to the fire.

The problem is that on therodinhoods.com, we will burn the fire till kingdom come.

The message is to be humble and honest and upfront.

That's missing at Oyebaby.

And I COMPLETELY don't get the 'can't find the order part'.

If I were Rahul or Sanjay, I would have taken out ALL the Barbie doll orders and checked which one went to which city etc etc.

I have no personal vendetta here. I am just a crusader to make entrepreneurs play a level playing field. 

Comment by Abhimanyu on May 31, 2012 at 5:06pm


After carefully reading Sanjay's post, I am a little unclear about the part where the new CC associate who picked up the information that Delhi MRP was higher than the Bombay one. But before that I want to make it clear that there wouldn't have been any discrepancy in the display price and invoice, otherwise the alarm would have rung on the day of purchase itself. It's the issue of the MRP rising. And I would never have a problem of getting a package with a higher MRP than whats invoiced. Rather, it'd make me only happy. But in either case, as per Babyoye's price change policy - the customer gets to pay the lower amount... always. So why did they ask me for more money?
Now I understand if this customer care exec wud call me and tell me that "the MRP has increased, but I still have to pay only the amount I am billed for." Which, again would be unnecessary but still I can understand that. But what business does he have to call me and tell me that I've to pay extra amount??!! How can your training get so diametrically wrong? Your executive's job is to tell me - that too if I call him - about MRP-billing price mumbo jumbo, and here, he's giving me a completely new information about how I am supposed to pay some extra amount, apparently because your vendors are acting smart!! Who is he to decide that? Obviously, he must have got orders from somewhere! Rahul's words were - "if our rep is found guilty, we will taken stringent action against him/her".. I am yet to hear about the stringent action. You can't blame it solely on bad training. Sorry, doesn't cut much ice with me.

Secondly, about the whole time your team was tracking this order - I was aghast to hear BabyOye tweeting me that they CAN'T locate any barbie set being delivered to 'city mentioned in my blog' i.e. Gurgaon...Not a single order!!?? Seriously...!? Is your system that heavily dependent on order nos and shipment nos to track something?? 

Comment by Devesh Tanna on May 31, 2012 at 3:39pm

Yes, Some comments seem to harsh.  I seem to agree with Gurpreet.

Even I have a ecommerce site, but I cannot search orders by sku, in fact I cannot search at all.  So some truth in that.

I have been ecomm for 12 years now (some may say is ecomm that old in India?).

Yes it many times happens that prices are either not revised or mentioned wrongly on sites.  It is called human error.

It happens to everyone and has happened to us too.  From our experience we have found it is ridiculous to ask customer for more money.  It always make sense to absorb the loss if it is bearable or cancel the order and refund.  Cancel for refund has it own level of dissatisfaction but it is hurting your bottom line too much, than that is the only option.

Even BA did this in 2009.  They had mistakenly put USA to India tickets for just $40 Plus taxes.  Many booked in a two hour window before BA shut it down.

However in the end BA did not honor those ticket and offered some discount coupons to these buyers.

So there is no right way of getting out of such a situation.  Every solution will cause some pain to the customer. It depends on how much pain one can bear.  MMT and FK are not for profit companies, they are only looking for valuations and will offer phenomenal levels of service.  Even today they are not making much money.

And no, the vegetable vendor scenario does not apply here.  A sale is only complete when delivery has been done.  In case of vegetable vendor, the delivery was done and sale complete.

Devesh

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