Demonetization has hit cash on delivery, says Snapdeal
Kolkata: The recent demonetization move by the centre has marginally hit the cash on delivery (COD) payment business of e-commerce firm Snapdeal, its co-founder Kunal Bahl said on Monday.
“There is a short-term dip in the cash on delivery business mode. Specifically, discretionary purchases have taken a dip,” Bahl told reporters at IIM Calcutta. Bahl said that the dip was temporary in nature and it would again take a sharp upturn shortly. With demonetization, people are preferring upfront payment through debit, credit cards and digital modes, he said.
Bahl said that in the medium to long term, it is a right thing to do. “It simplifies the e-commerce business on the whole.... This is better economics for the e-commerce business”.
To help the customers who had ordered on thecash on delivery mode, Snapdeal had been insisting on making payments using the Freecharge e-wallet. “For the last three to four days, we are seeing good traction in this,” Bahl said.
Traditionally, cash on delivery would comprise 70% of the total transactions. “Now this has come down”. Asked whether there had been an overall dip in sales over the last few days, he said “it is not material”.