Jabong launches ‘Next-Door' service to increase orders

Sometimes reaching out to customers based in rural areas isn’t feasible for

e-commerce companies. Sighting demand in such areas, online platform Jabong has launched 'Next-Door' service, with an aim to increase consumer base and increase orders. The service will enable customers to pick up their order at the nearest coffee shop, petrol station or tour operator. The trial for the newly launched pickup service will commence soon in 39 towns, including Murshidabad in West Bengal, Chandausi in UP, Dahod in Gujarat and Udhampur in Jammu and Kashmir covering 469 pincodes and 114 pickup points.

As of now, Jabong.com gets about 55 percent of its revenue from non-metro centres and the company expects to achieve a double digit contribution in sales from this new scheme once it scales up. To begin with, it expects to get about 20 orders a day in the first round of the service, which is anticipated to grow big with up to 200-1000 orders a day within a year, as it gains momentum.

The company is also relying on the 700 percent growth in mobile usage, which can boost orders by the smart phone users residing in the non-metro regions. At Jabong, mobile users now contribute 25 percent of its orders and it is expected to cross 50 percent in the next 5 years.

Though Jabong was planning to list on a bourse in the US or Europe, it might explore options in India as well. The fashion retailer is putting the processes and systems in place for a listing. Jabong, which started operations in 2012, houses more than 1,000 brands and generates annual sales of 300 million dollars (Rs 1,804.3 crores).