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Friday, May 31, 2024

Donald Trump has been convicted. Can he still run for President? -ET

 

Not since Eugene V. Debs campaigned from a prison cell more than a century ago has the United States experienced what is now happening: a prominent candidate with felony convictions running for president. And never before has that candidate been someone with a real chance of winning.

A New York City jury convicted former President Donald Trump on Thursday of falsifying business records to cover up a hush-money payment to a porn actor. He has been charged with dozens of other felonies across three additional cases: two federal and one in Georgia.

A New York City jury convicted former President Donald Trump on Thursday of falsifying business records to cover up a hush-money payment to a porn actor. He has been charged with dozens of other felonies across three additional cases: two federal and one in Georgia.

For now, he faces no formal campaign restrictions, and he remains highly competitive in polls. But his sentencing on the New York convictions is approaching July 11, the other cases are still looming, and the Constitution and U.S. law have clear answers for only some of the questions that have arisen and may still arise.
Others could bring the country into truly uncharted territory, with huge decisions resting in the hands of federal judges.
Here is what we know and what we don't know.

Can Trump still run after his conviction?
This is the simplest question of the bunch. The answer is yes.

The Constitution sets very few eligibility requirements for presidents. They must be at least 35 years old, be "natural born" citizens and have lived in the United States for at least 14 years.There are no limitations based on character or criminal record. While some states prohibit felons from running for state and local office, these laws do not apply to federal offices.

The Republican and Democratic parties have guaranteed spots on general-election ballots in every state, and the parties tell election officials whose name to put in their spot. States could, in theory, try to keep Trump off the ballot by passing legislation requiring a clean criminal record, but this would 
be on legally shaky ground.

"We let states set the time, place and manner" of elections, said Jessica Levinson, a professor at Loyola Law School who specializes in election law, "but I think the best reading of our Constitution is you don't let the state add new substantive requirements."While that view is not universal among legal experts, it prevailed in court in 2019, after California passed a law requiring candidates to release their tax returns in order to appear on primary ballots. A federal district judge blocked the law from taking effect, saying it was most likely unconstitutional. The California Supreme Court also unanimously blocked it as a violation of the state's constitution, and the case never reached the U.S. Supreme Court.


What about the 14th Amendment?
The Supreme Court ruled unanimously in March that states could not keep Trump off their ballots under Section 3 of the 14th Amendment, which disqualifies people who "engaged in insurrection or rebellion" after taking an oath to support the Constitution.

Numerous lawsuits had argued that Trump's actions before and on Jan. 6, 2021 -- which are the subject of two criminal cases against him, but not the one in which he was convicted -- met this bar. In December, the Colorado Supreme Court found him ineligible, and Maine's secretary of state did the same.

But the Supreme Court -- led by a conservative supermajority, with three justices appointed by Trump himself -- concluded that only Congress had the power to enforce Section 3 against candidates for federal office. (Four of the justices, including the three liberals, wanted to allow a wider range of options for disqualification.)

Congress is not going to do that with Republicans in control of the House. And the 14th Amendment is separate from criminal cases, meaning convictions in the election-related cases would not disqualify Trump either.

Congress can designate either groups of people to whom Section 3 applies (such as people who fought for the Confederacy) or specific crimes that, upon conviction, would prompt disqualification, said Anthony Michael Kreis, an assistant professor of law at Georgia State University. But none of the crimes Trump is charged with carry that automatic penalty.

"Whether or not Trump is tried, convicted, acquitted, that's a separate question from whether or not he's disqualified," said Richard L. Hasen, an election law expert at the University of California, Los Angeles.One of the charges in the federal case related to Trump's efforts to overturn the 2020 election -- conspiracy to violate civil rights -- once carried a disqualification penalty, Kreis said, but Congress removed it decades ago.

Could the party replace him on the ticket?
Now that Trump has secured a majority of delegates to the Republican convention, the party has no mechanism to nominate somebody else. Under the party's official convention rules, if a delegate tries to support shall not be recognized."

Nor have top Republicans shown any interest in another nominee.

If he were forced to withdraw from the race after the convention, party leaders could replace him then; they considered doing so in 2016 after the release of the "Access Hollywood" tape in which he bragged about grabbing women's genitals. But this is highly unlikely given how vigorously the party has circled the wagons around him.Can he vote after his conviction?
It depends on his sentence, but there is a good chance that the answer is no.

Trump is registered to vote in Florida, and people convicted of felonies are disenfranchised there. Most felons in Florida regain voting rights after completing their full sentence, including parole or probation, and paying all fines and fees. But depending on what the sentence is, Trump may not have time to complete it before Election Day.New York's rules are somewhat more lenient: Felons there can vote while on parole or probation. And there is a chance that if New York would let Trump vote, then Florida will, too. There's a provision in Florida law that might apply New York's standards, because that's where the conviction happened. A spokesperson for the Florida secretary of state's office did not immediately respond to inquiries Thursday about that provision.

But, as in Florida and almost every other state, felons in New York are still disenfranchised while in prison -- so if Trump is imprisoned, he would be disenfranchised regardless. That would put him in the extraordinary position of being deemed fit to be voted for, but unfit to vote.

He could petition for clemency, which would require the approval of Florida's governor -- Ron DeSantis, who ran against Trump in the Republican primary -- and two Florida Cabinet members. Chris Taylor, director of external affairs for the Florida Commission on Offender Review, confirmed that Florida residents convicted of a felony could apply to have their voting rights restored through that process even if their conviction happened outside Florida.

What happens if Trump is elected from prison?
No one knows.

"We're so far removed from anything that's ever happened," said Erwin Chemerinsky, a constitutional law expert at the University of California, Berkeley. "It's just guessing."

Legally, Trump would remain eligible to be president even if he were imprisoned. The Constitution says nothing to the contrary. "I don't think that the framers ever thought we were going to be in this situation," Levinson said.

In practice, the election of an incarcerated president would create a legal crisis that would almost certainly need to be resolved by the courts.

In theory, Trump could be stripped of his authority under the 25th Amendment, which provides a process to transfer authority to the vice president if the president is "unable to discharge the powers and duties of his office." But that would require the vice president and a majority of the Cabinet to declare Trump unable to fulfill his duties, a remote prospect given that these would be loyalists appointed by Trump himself.

More likely, Trump could sue to be released on the basis that his imprisonment was preventing him from fulfilling his constitutional obligations as president.

If he were convicted in one of the two federal cases before the election -- an increasingly unlikely prospect, given his lawyers' success in delaying both of those cases -- and then won in November, he could also try to pardon himself or to commute his sentence after getting into office. That would leave his conviction in place but end his imprisonment. Either action would be an extraordinary assertion of presidential power, and the Supreme Court would be the final arbiter of whether a "self-pardon" was constitutional.

Or President Joe Biden, on his way out the door, could pardon Trump on the basis that "the people have spoken, and I need to pardon him so he can govern," Chemerinsky said.

But a presidential pardon is not an option in relation to the New York case, and would not be in the Georgia case either, because the president does not have pardon power for state charges.The Justice Department does not indict sitting presidents, a policy outlined in a 1973 memo, during the Nixon era. It has never had reason to develop a policy on what to do with an incoming president who has already been indicted. But the rationale for not indicting sitting presidents -- that it would interfere with their ability to perform their duties -- applies just as well in this hypothetical scenario.

"The reasons why we wouldn't want to indict a sitting president are the reasons we wouldn't want to prosecute a sitting president," said Chemerinsky, who has disagreed with the department's reasoning. "My guess is, if the Trump prosecution were still ongoing in some way and Trump were elected, the Justice Department -- which would be the Trump Justice Department -- would say, 'We're following the 1973 memo.'"

Like so much else here, this would be legally untested, and it is impossible to say what the Supreme Court would do if the question reached it.

What would happen to the Georgia case, a state criminal proceeding beyond the reach of a Trump-run Justice Department, is a harder question still -- one the country has never had reason to develop a road map for.In its Clinton v. Jones ruling in 1997, the court allowed a lawsuit against President Bill Clinton to proceed. But that case was civil, not criminal, and it was filed by a private citizen, not by the government itself.


Now India can hope to have its own SpaceX and Blue Origin :-ET

 

Elon Musk's SpaceX and Jeff Bezos' Blue Origin dominate the space industry discourse in the world. From reusable rockets to space tourism, these companies are at the forefront of the global space industry. In India, the space industry has largely been confined to the public sector. But now that is all set to change.
Two recent events can make one believe that India too can hope to have its own SpaceX and Blue Origin in future. Two days after it was forced to call off the launch of its Agnibaan’s “SubOrbital Technological Demonstrator or SOrTeD” mission, spacetech startup Agnikul Cosmos on Thursday carried out a successful mission.


Agnikul's mission achieved three milestones: Demonstrating India’s first launch from a private launchpad (Agnikul Launch Pad in Sriharikota named Dhanush); showcasing the country’s first semi-cryogenic engine-powered rocket launch; and utilising the first single-piece 3D-printed engine designed and built domestically to power a launch vehicle.
Last month, India’s first military-grade spy satellite manufactured in the private sector, by Tata Advanced Systems Limited (TASL), was successfully deployed into space. A wholly owned subsidiary of Tata Sons, TASL is a significant player for aerospace and defence solutions in India.

More and more private companies in India, from small startups to those owned by big conglomerates, are now zooming into the space business. The number of space start-ups has gone up from just 1 in 2014 to 189 in 2023, as per government data. The investment in Indian space start-ups increased to $124.7 million in 2023.

The current size of the Indian space economy is estimated at $8.4 billion (around 2-3% of global space economy) and it is expected to reach $44 billion by 2033. The central role in this growth will be played by the private sector as the government has taken a number of steps to encourage participation of the private companies in the space sector. It is expected that the private sector will independently take up end-to-end solutions in satellite manufacturing, launch vehicle manufacturing, satellite services and manufacturing of ground systems.

Opening up space to the private sector
In May last year, a rocket developed after years of efforts by hundreds of Isro scientists was made available for private companies. The Indian National Space Promotion and Authorisation Centre (IN-SPACe) issued an expression of interest for transfer of technology of the small satellite launch vehicle (SSLV) to Indian private players. Isro had flown the SSLV twice and the second mission was a success. It is a three-stage solid launch vehicle capable of carrying a payload of up to 500kg in a low-Earth orbit.

Ever since opening of the space sector to private firms in 2020, the government has been intent upon sharing technology with them. The transfer of the SSLV tech to the private sector will enable Indian companies to grab a significant share of the expanding global satellite launch market by offering services at a lower cost.

In April last year, the Union Cabinet approved Indian Space Policy 2023 which aims to encourage private investment in the space sector. The policy authorises IN-SPACe, India's space regulator, to act as the single-window agency for clearance of space activities by government entities as well as non-government entities.

The government actually opened up the space sector to private entities three years ago, but it had played a limited role. The new policy allows the private sector in every stage of space programmes. "The single takeaway from the new policy is that nothing is off limits to the private sector. They can work on technologies, create infrastructure, develop launch vehicles, launch satellites with payloads for communication, navigation, earth observation (EO)... there is no constraint put on the private sector," IN-SPACe Chairman Pawan Goenka had told ET last year.

Since the space sector holds great strategic and security importance, any space activity must be authorised by IN-SPACe, whether it is government or private. While ensuring India's strategic or security interests are not compromised, it allows private entities across various categories and functions.

The new policy means approvals come easier, stakeholders are aligned with each other, and there are more private industry veterans in government helping the sector. Goenka himself is an auto-industry veteran, a former MD of Mahindra and Mahindra Limited and chairman of SsangYong Motor Company in Korea.

Traditionally, big private companies such as Godrej & Boyce and Larsen & Toubro have been working with Isro. However, the new policy institutionalises the Isro-industry relationship.

Allowing FDI in space
The government gave another boost to the private sector by allowing foreign direct investment (FDI) in space in February this year.

Allowing FDI in the space sector will help fuel the efforts of the startup ecosystem in launch vehicles, satellite manufacturing, and assembly segment. The move would help Indian companies integrate well into global space sector supply chains and enable innovation.

FDI in the space sector was earlier allowed up to 100 per cent in the area of satellite establishment and operations through government route only. The government changed the policy to allow up to 74 per cent FDI under automatic route in satellite-manufacturing and operation, satellite data products, and ground and user segments. Beyond this limit, government approval will be required in these areas for FDI.

Up to 49 per cent FDI is allowed through the automatic route for launch vehicles and associated systems or subsystems, the creation of spaceports for launching and receiving spacecraft. Beyond 49 per cent, FDI in these activities would require government approval, it added. Further, up to 100 per cent overseas investments are permitted under the automatic route for manufacturing of components and systems/sub-systems for satellites, ground, and user segments.

Sreeram Ananthasayanam, Partner, Digital Govt and Space Tech Leader, Deloitte, had said that this amendment is also expected to give a fillip to the burgeoning downstream/user segment of the space sector value chain which leverages India's natural talent in IT/analytics and needs of the growing economy of our country. "The policy will definitely help and further fuel the efforts of our nascent start-up ecosystem in launch vehicles, satellite manufacturing and assembly, and downstream application development," he said.


Thursday, May 30, 2024

Work overnight for FPI tax papers: Sebi tells big four firms :-ET

 

Mumbai: The Big Four accountancy firms will have to burn the midnight oil to give foreign portfolio investors (FPIs) the chance to move money faster.

At a meeting on Tuesday, the Indian capital market regulator has told the accounting biggies in no uncertain terms to generate the mandatory 'confirmation certificate' overnight so that offshore funds managers can repatriate the money from the sale of stocks here to other international markets the very next day.

Under the regulations, FPIs have to submit confirmation reports to the authorised dealer banks every time they transfer funds out of India to invest elsewhere. The banks, which arrange the remittance and also act as custodians of the FPIs, receive the certificate from the accounting firms to figure out the quantum of tax that has to be withheld before funds are repatriated.

After the market closing hours, clearing corporations send the trade information to the custodian banks which share the data with the Big Four and other accounting firms which handle the accounts of the FPIs.

The accounting firms receive the information from the custodians later in the evening of the day the trade happens. The tax certificates are generated the next day and shared with the custodian banks by evening. Since the foreign exchange market is not active in the evening, it's not possible for FPIs to remit the money that day.


TO GET BENEFITS OF T+1 TRADE

According to persons aware of the discussions, senior officials of the Securities & Exchange Board of India (Sebi) have made it clear that this must change so that FPIs can reap the benefits of the T+1 (trade plus one day) settlement cycle. Given a choice, FPIs would prefer having the flexibility and time-window to deploy the money in other markets.

"Sebi wants the custodians and the accounting firms to speed up their systems so that FPIs can remit money the next day of the trade. So, if a Big Four receives data at 8 p.m. or 9 p.m. on the day of the trade, it now has to generate and send the report to the banks by around 9 a.m. the next day. Even though an FPI which sold stocks (on T day) would receive the sale proceeds at about 1 p.m. (on the T+1 day), it can buy dollars between 9 a.m. and 1 p.m. (on the T+1 day) in the forex market, and remit the funds soon after the money is credited to its bank account," said an industry person.

Sebi is categorical that the accounting agencies must use the 12 hours, between 9 p.m. (of the previous day) and 9 a.m. (of the next day), to produce the certificate - an instruction that has understandably not gone down well with many in the Big Four.

"I don't think they have a choice, though the certificate typically takes some time. The tax liability is computed based on FIFO (first in-first out method), corporate actions are considered, and then the calculation is cross-checked and reviewed by another person. Also, depending on the jurisdiction of an FPI, the specific treaty, if any, of that country with India and the applicable tax rate has to be checked," said another person.

Besides the chartered accountants, the meeting was attended by officials of custodian banks and clearing houses of the stock exchanges. The T+1 settlement was introduced in 2021 in a phased manner and was fully implemented from January 2023. From the end of March this year, the regulator introduced the T+0 settlement on an optional basis.



Health insurance claim rule change: Cashless claims must be cleared in 3 hours; insurer to pay hospital charges for delay in discharge Read more at: https://economictimes.indiatimes.com

 



You have been at the hospital for a couple of days and now that you are fit, ready to go home. The doctor comes on a round in the afternoon and declares you fit for the discharge. You pack your bags as you will finally be able to go home but then the hospital staff tells you to wait for some more time. You can see your family members running around and making thousands of calls to get the bills cleared. The clock touches 7'o clock in the evening and you are still stuck in the hospital as your health insurance claim has not been cleared. The hospital will not discharge you unless the insurer signs off on the bills. If it takes a few more hours, you may have to spend another night at the hospital and it will increase your hospital bill as well. Well, this is not an aberration.

Delays in settling health insurance claims by insurance companies or third-party administrators (TPAs) — intermediaries between insurance companies, the insured, and hospitals have often become a nightmare for patients and their families. According to a survey by Local Circles, "In several cases cited by policyholders on LocalCircles, it took 10-12 hours after the patient was ready for discharge for them to get discharged because the health insurance claim was still getting processed. If they stay back at the hospital another day to do so, the cost of that additional night's stay has to be borne by them. According to several patients, this is the experience where the insurance company has already provided a pre-approval to the hospital's TPA desk before admission of the patient."

This is where the new rule in health insurance claim process by IRDA is going to help policyholders in the most crucial stage.

IRDAI sets a time limit for approving cashless claims

To change this cumbersome experience for health insurance policyholders, the Insurance Regulatory and Development Authority of India (IRDAI) has said that the insurer must grant the final authorisation within three hours of receiving the receipt of the discharge request from the hospital."In no case, the policyholder shall be made to wait to be discharged from the hospital," the regulator said in a master circular dated May 29, 2024.


IRDAI said, "If there is any delay beyond three hours, the additional amount if any charged by the hospital shall be borne by the insurer from shareholder’s fund."

The regulator added that in the event of the death of the policyholder during the treatment, the insurer will:
i) Immediately process the request for claim settlement.
ii) Get the mortal remains (dead body) released from the hospital immediately 

100% cashless: IRDAI asks insurers to decide on cashless claims within one hour

Further, the regulator asked the insurers to strive to achieve 100% cashless claim settlement in a time-bound manner. In emergency cases, the insurer should decide on the request for cashless authorisation immediately, within one hour of receiving the request. IRDAI also asked insurers to put necessary producers in place immediately by July 31, 2024, to achieve this goal. The insurers may arrange for dedicated help desks in physical mode at the hospital to deal with and assist with the cashless requests.

Moreover, the regulator also asked the insurers to provide pre-authorisation process to the policyholder through digital mode. Pre-authorisation usually means an initial amount has been sanctioned by the insurer along with an acknowledgment that the claim will be paid subject to final invoice received from the hospital.

On how to settle health insurance claims, the regulator says, "No claim will be repudiated without the approval of PMC or a three-member sub-group of PMC called the Claims Review Committee (CRC). In case, the claim is repudiated or disallowed partially, details shall be conveyed to the claimant along with full details giving reference to the specific terms and conditions of the policy document."

Diverse range of products for health insurance customers, how to use multiple health insurance policy

Further, IRDAI said that a diverse range of insurance products will be available for all ages, regions, occupations, medical conditions/treatments, and all types of hospitals and healthcare providers to choose from based on the affordability of the customers.

Narendra Bharindwal - Vice President, Insurance Brokers Association of India says, "Policies must be portable and underwriting policy should not discriminate against any particular group. The goal is to maintain high standards of customer service, ensuring an environment of trust and transparency in health insurance."

A policyholder can file for claim settlement as per his/her choice under any policy. The Insurer of that chosen policy shall be treated as the primary Insurer.

Policyholders who have multiple health insurance policies will get an option to choose which one they want to use to settle claims. The primary insurer with whom the claim is first submitted needs to coordinate and facilitate settlement of the balance amount from the other insurers, the regulator said in the master circular. If there is no claim during the policy period, the insurer may reward the policyholders with an option of no claim bonus either by increasing the sum insured or discounting the premium amount.

Tuesday, May 28, 2024

COD(e) red: Failed deliveries ring warning bells for Amazon, Flipkart, D2C brands :-ET

 


“You can’t live with it, or without it.”


Chirag Taneja, co-founder and CEO of GoKwik neatly summed up a big problem Internet commerce is facing in India — failed deliveries. Known in e-commerce jargon as RTO (return to origin), this is increasingly becoming a big headache for the industry.

The reasons behind RTOs can be many. Non-availability of the customer to receive the shipment, customer cannot be contacted at the time of delivery, incorrect address, order being cancelled because the customer changed his mind while the shipment was in transit. Many times, the shipment reaches the address, but the customer refuses to accept the delivery as he doesn’t want the product anymore.

To be sure, RTO is not a new problem for e-commerce in India, but as the market has expanded multifold beyond established online marketplaces to vertical commerce, D2C (direct-to-consumer) and social commerce brands, it has become a much bigger problem.

“It is a necessary evil to be tackled if you have to do e-commerce in India,” Taneja adds. GoKwik, like other tech startups such as Pragma and LimeChat, is in the business of providing RTO-reduction tools to D2C brands.

So, how can companies fix this problem? Before we get there, let’s understand the genesis of the problem.

Bought it, but don’t want it
In industry parlance, when an item is either returned or not delivered, the process is called reverse logistics. There are two parts to it. One, when the customer receives the delivery and then places a request for return. The other is RTO when the customer doesn’t receive the delivery and hence the product has to be shipped back to the warehouse or the seller’s location. In e-commerce jargon, the former is called reverse pick-up (RPU). In the e-commerce industry, RPU is estimated at up to 5% of overall shipments, while RTOs are much higher at 40% to 50%.

In India, close to 60%-65% of e-commerce orders are COD. Of this, about 25% to 30% turn RTOs. In contrast, unsuccessful deliveries in the pre-paid order category range from 2% to 3 %. That’s because the customer’s intent to actually buy the product may be fickle when placing the order under COD, leading to higher rate of order cancellations.
RTOs are much higher in COD@2x
“COD dominates e-commerce even with the big push for digital payments like UPI. Even though e-COD or payment via digital means at the customer’s doorstep has become very prevalent, it still classifies as COD” says Vishwachetan Nadamani, chief operating officer at Ecom Express.

Developed economies that don’t have COD and only work on pre-paid transactions face other problems but not RTOs. Besides India, some other markets do have cash on delivery like Saudi Arabia, the UAE, Indonesia, and Philippines. In countries like the UAE and Indonesia, RTOs are 15%-20% of COD orders.

RTOs are a much more complicated problem in India with COD still being the biggest payment method for e-commerce.

In developed economies, the customer’s natural behaviour is around placing the order only if they want it. But in India, the intent is to save as much as possible and keep exploring for the best product. “Customers know if they place a COD order, they don’t have to worry. Even if they have placed an order, they keep searching for a price discount and cancel an existing order if they find a better deal on another platform,” says Ankush Jindal, associate director at Shiprocket, an e-commerce logistics aggregator.

A pain point for new D2C brands
RTO impacts all e-commerce platforms, but the problem is acute for new D2C brands, and it makes a significant dent on their books if 25% to 30% of COD orders become RTO. Social commerce as a broad category is very high on RTOs, going up to 35% to 40%.

Sellers need to bear the additional cost for the return journey of the shipment, besides the freight for the forward journey of the item. “If a seller pays, say, INR100 for the forward freight, then the least RTO freight would be INR45-INR50. Bigger brands that have larger volumes of orders can negotiate for lower rates with the logistics company,” says Jindal. Also, since the return shipment takes much longer than the forward journey, products get stuck for days or get damaged. So, the seller may lose inventory, and in many cases, customers too.

Order cancellations to a certain extent depend on at what stage the brand is. For large D2C brands like BoAT, Mamaearth, mCaffeine or gadget brand Noise, RTOs are low because they have gone through the learning curve on what causes failed deliveries — is it to do with their product pricing or their choice of courier partners. Also, customer intent for established brands has matured to a certain extent. These are not the brands that people would want to merely try and see. Jindal of Shiprocket gives one example. “In the last six months, Adivasi Hair Oil has grown so big that we have seen their RTOs reducing gradually. Also, the brand is investing towards improving its last-mile services and delivery timelines.”

On the other hand, for big brands, even a 5% RTO rate is significant. Since their volumes are much higher, their total RTO costs are also huge. So, if they are making INR100 crore, their logistics costs would be INR8 crore to INR10 crore. Saving 5% of this on a monthly basis is a huge saving.

There is a category nuance to it as well. While the value-fashion category has 18%-20% returns, it is lower for the discounted branded fashion category (5% or less). Beauty and personal care items also see around 5% cancellations since they are considered borderline essential.

The e-commerce industry has gone through a learning curve to tackle RTOs. Earlier, RTOs were believed to be a logistics problem to the extent of 80%. But actually it is a 50:50 problem from both the logistics side and the consumer side.

Profiling the customer: Opportunities and challenges
When it comes to solving customer-related issues, brands follow a three-pronged strategy: pre-purchase, purchase, and post purchase.

“We need to tackle it from the top of the funnel. You must figure out if you are really selling to a customer with the right intent and how do you lock them in,” says Taneja of GoKwik.

But how does one get a clue about a customer’s real intent?

Use of technology can come in handy here.
Tackling failed deliveries @2x
Creating a customer’s profile based on historical data on the numbers of orders accepted and cancelled has been the core strategy. This information can be used to predict the probability of a customer cancelling a particular purchase on a real-time basis. If it turns out to be a very high-risk transaction, there are various interventions that can be done.

Also, correcting wrong or incomplete addresses at the source can also go a long way in keeping RTOs under check. Logistics companies like Ecom Express and Delhivery have developed their AI-based address-correction tools to correct wrong addresses.

An important part of locking customer intent is to add safeguards to the ‘COD option.’ The safest intervention is the ‘no-COD’ option to the very high-risk customers. A popular solution is part-pay, asking the customer to pay a small percentage of the order digitally while the remaining can be paid on COD. This can work to retain orders from very high-risk to medium- or low-risk customers.

Some brands ‘lock the intent to buy’ by placing a fee on COD order and offer a discount on the prepaid consumer so that risky consumers shift to prepaid. In the case of COD orders, some brands, especially the small ones, manually call the customer to confirm the order or confirm the order via an OTP.

Amazon and Flipkart already have a lot of analytics based on PIN codes and customer’s behavioural history using which customers are tagged as ‘very high risk.’ In several such cases the platforms will accept only prepaid orders.

However, using historical data of customers for predicting RTOs has a catch. Experts say using tech tools can lead to brands losing a certain number of orders though their number of successful deliveries may increase.

Nadamani of Ecom Express brings up another challenge for effectively profiling customers. “Both logistics companies as well as e-commerce platforms maintain consignee profiles based on historical data. But so far, we have not seen a good amount of coordination between these two. If these two players can coordinate, it can become a powerful tool to predict an RTO.”

Also, using the buying behaviour of a customer on an existing brand to predict his intent for a new brand would be very different. Similarly, prediction tools will have challenges for new users of e-commerce.

Each RTO-saving tool is trying to solve a small piece from different aspects of the order journey, thus saving RTOs by a very small percentage.

For logistics companies, low RTO rates are a key value proposition for D2C brands. Logistics companies are contractually obligated to make three attempts for making a delivery. In case of customers refusing to accept a delivery, companies use an OTP-based mechanism allowing customers to refuse a delivery and thereafter the delivery boy returns the shipment back to the dispatch centre.

All logistics companies are going through their learning curve. Many RTOs happen because of pure inefficiencies, say speed of delivery gone wrong as opposed to what was promised to the customer. If a shipment gets delayed beyond the promised timeline, the chances of an RTO happening keep increasing.

Companies are also pushing the pedal on improving contact with customers. Ecom Express is working on a ‘contactability suite’, likely to be launched by June this year wherein the company will have a direct communication channel with the customer, parallel to what the delivery boy has with the customer communication channel to aid successful deliveries.

The final cut
The twin conveniences of COD and ‘easy returns’ have led to the explosive growth of the e-commerce industry in India. But Nadamani of Ecom Express stresses that companies need to strike a fine balance between going maniacal over reducing RTOs versus customer convenience. For a good customer with a genuine reason, there should be no problem in cancelling an order.

While different brands have their own appetite for reducing RTOs, depending on how much GMV (gross merchandise value) they want to lose, the problem will exist as long as COD thrives in India and companies don’t find a balanced tool that will alert them about a customer’s real intent to buy.

(Graphics by Sadhana Saxena)

Monday, May 27, 2024

Voda Idea launches extra data for new 4G and 5G smartphone users Read more at: https://economictimes.indiatimes.com/industry

In a bid to attract data subscribers Vodafone Idea (Vi), for the first time, is offering extra data allowance for both 4G and 5G smartphone users on Vi network.

It announced the ‘Vi Guarantee Program’ for prepaid users, on Monday, which offers 130 GB data to all 5G and 4G phone users. This extra data shall be given over a period of one year. 10GB will be credited to users’ accounts automatically on every 28th day for 13 consecutive cycles, the company said in a release.


Avneesh Khosla, Chief Marketing Officer at Vi said, "The 'Vi Guarantee' program is designed to address this growing demand by providing users with an uninterrupted, high-speed data experience."

Many smartphone users in India do not maximise the potential of their 4G/5G mobile devices due to a lack of sufficient data, Vi said.

“With this offer, users can continue to binge on their favourite content even after their daily quota gets exhausted,” it added.

The offer is available for users of 5G smartphones or who have recently upgraded to a new 4G smartphone. Vi users will need to be on a daily data unlimited plan of Rs 239 and above.

It is currently available across India except Karnataka, Andhra Pradesh, Madhya Pradesh, Assam and North East and Orissa.