Archive for October, 2011

If a defective product leaves the company’s premises, rectifying the error at a later date is expensive for the company as it usually involves a lot of adverse publicity as well as expensive returns. So it is important for an e-commerce company to have proper quality control systems, to ensure that the product shipped does not contain any defects and there is no damage or pilferage by couriers during transit.
In the short term, shipping a faulty item may help get rid of inventory, but in the long term, it can be very expensive. The cost of customer acquisition, some one who spends a few thousand rupees annually is often more than Rs 2000 . Finding a high paying/ spending customer is much more difficult. So if the company fails to ensure that proper checks are in place, they may lose a customer for life and directly affect their future growth.