Amazon promises 10% cash-back even on items returned

Amazon promises 10% cash-back even on items returned
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Story Dated : July 27, 2017

Amazon has an eye-popping offer for its mobile wallet – a 10 per cent cash-back even on items returned. The ecommerce giant’s payment vehicle, Amazon Pay India is wooing local consumers with this promotional: “Select Amazon Pay balance, get 10 per cent extra as refund amount.” Although the offer is valid once per customer, some sellers believe this could tend to increase unnecessary returns.

“Amazon is encouraging returns at sellers’ cost and investment. Amazon should give equal incentive to the seller whose stock is being returned,” said a spokesperson for the All India Online Vendors’ Association (AIOVA), which represents about 1,500 online sellers across Web platforms. A few weeks ago, the US behemoth invested Rs 130 crore in the payment entity, Amazon Pay India, and is now aggressively offering cash-backs for users. For instance, a first-time user shopping for more than Rs 700 gets Rs 100 cashback as Amazon Pay balance.

Sriram Jagannathan, Vice President Payments, Amazon India, described offers as part of the effort to enhance shopping experience. “Our aim is to improve the digital payment experiences for customers buying on our marketplace…We provide offers to customers to try this experience.”
The latest funding in Amazon Pay has come from Amazon Corporate Holdings and Amazon. com in Amazon Pay India, launched in December, documents submitted to the corporate affairs ministry show.
The Amazon Pay offers are applicable not only for transactions on Amazon’s own platform, but also on third-party Web sites such as abhibus. com. It also has tie-ups with vendors such as Cafe Coffee Day, Amar Chitra Katha, Innerchef, Fasoos, and Housejoy.
Amazon’s biggest local rival Flipkart had acquired UPI-based payments company Phone-Pe in April 2016, and enabled payments through the wallet on the Flipkart platform in August last year to improve the digital payment experience for its customers.