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Xiaomi removed COD option

Discussion in 'Technology News' started by billubakra, Mar 9, 2018.

  1. billubakra

    billubakra Well-Known Member

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    The Xiaomi Redmi Note 5 and the Redmi Note 5 Pro were launched in India on February 14. The branding is confusing because the Redmi Note 5 sold in India is a rebrand of the Redmi 5 Plus sold in China, whereas the Redmi Note 5 Pro is an entirely new device that was launched in India first. It will be sold in China as the Redmi Note 5.

    In India, three flash sales have been held so far on February 22, February 28, and March 7 for the Redmi Note 5 and the Redmi Note 5 Pro. In each of the three occasions, the two phones have been selling out in an astonishingly quick amount of time. Xiaomi has highlighted the fact that in the first sale, more than 300,000 units of the Redmi Note 5 and the Redmi Note 5 Pro were sold within three minutes. However, as the phones aren’t available via offline retail yet, this means that most of the potential buyers of the phones haven’t had a chance to purchase them so far.

    This problem is nothing new, as consumers have been facing it since Xiaomi’s very first flash sales in India in 2014. Demand continues to be more than supply for the Redmi series in India, which leads to the result of phones being sold out in seconds. We have previously talked about how this has an impact on Xiaomi’s sales, as consumers cannot purchase Xiaomi phones and instead are forced to turn towards other smartphone vendors.

    In order to solve this issue, the company has improved its offline retail channels. However, as the Note 5 series is only available online for now (it will be available via offline retailers in the near future), the situation still remains poor for potential buyers of the Redmi Note 5 / Note 5 Pro who have no idea whether they will be able to purchase the phone they want in this week’s sale, or next week’s sale, or even later than that.

    One big problem that leads to the phones being sold out within seconds is reselling. Resellers buy multiple units of these phones and then resell them at a premium, promising guaranteed stock. This practice affects genuine buyers, as they can’t actually get a phone for themselves.

    In order to solve this issue, Xiaomi has turned towards the drastic option of removing the Cash on Delivery (COD) payment option for sales of the Redmi Note 5 Pro on Mi.com and Flipkart. The Cash on Delivery payment option was no longer available on the March 7 sale, and Xiaomi hasn’t shared details about when the restriction will be removed, except for promising that it will only be there for initial few sales.

    In a forum post, the company acknowledged that “many of you have not been able to buy [Redmi Note 5 and Note 5 Pro], despite us bringing very large quantities […]”. It added: “We have always, and will continue to stringently discourage unauthorized reselling across all our channels.” The removal of the Cash on Delivery option will give a better chance to consumers to buy the company’s products, according to Xiaomi.

    It remains to be seen whether the strategy works. Unauthorized resellers have used the Cash on Delivery option in the past, but they can use other payment options as well. The move can even backfire as the Cash on Delivery option remains highly popular with genuine buyers as well. Time will tell whether this improves the buying experience of the Redmi Note 5 Pro, but here’s hoping that the company does more steps (such as bringing more quantities of the phones) to satisfy the demand of potential buyers.

    Cash on delivery payment option removed for Xiaomi Redmi Note 5 Pro
     
  2. Flash

    Flash Agent of Speed

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    This also happens with Mi TV's now.
     
  3. OP
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    billubakra

    billubakra Well-Known Member

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    A reseller can also sell if he buys using the prepaid methods. Idk how this will help.
     
    meetdilip likes this.
  4. whitestar_999

    whitestar_999 Super Moderator

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    It will help.CoD is the preferred method of buying for resellers.I have heard these resellers have setting with courier delivery guys & basically they just swipe the mobile intended for delivery to genuine customers for CoD by paying the money themselves & later genuine customers orders are cancelled citing "unable to deliver" or sometimes even showing delivered.Since money is paid so there is no loss for FK/Amazon & courier companies so nobody questions much about how "unable to deliver" or "delivered" without actually getting delivery.
     
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    billubakra

    billubakra Well-Known Member

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    Bold part is just an assumption.
    I don't understand, I ordered a phone via COD, it wasn't delivered. You(reseller) paid for it and took its delivery. So, how can it show unable to deliver?
    I think COD option has been removed because many buyers just refuse the delivery. If we prepary for the same then we can only get a replacement and not return the same.
     
  6. whitestar_999

    whitestar_999 Super Moderator

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    It will show as "delivered" even if you didn't get the delivery.My guess is "Unable to deliver" means packet will be held at courier centre & then by citing some excuse like packet was damaged/diverted to official xiomi reseller(maybe xiomi has some policy where if a COD was unable to deliver then it is diverted to official reseller) etc it will be diverted after getting the money for it.Of course it may be just assumptions but it is well known that cash options are always much easier to manipulate compared to online payment options(may be xiomi understood this too & that's why they removed it as most complaints about non-delivery coming from COD customers).
     
  7. Futureized

    Futureized New Member

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    Xiaomi and Mi !
    Are these both technically/operations/sales different in India ?
     
  8. Flash

    Flash Agent of Speed

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    Both are same. Xiaomi is a company, and Mi is a brand name i guess.
     
    Futureized likes this.
  9. Paavni Sethi

    Paavni Sethi New Member

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    I think most genuine buyers usually opt for cash on delivery as well, since they're unsure as to whether the delivery will be made or not, and don't want to wait for a refund later.
     

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