COD has been India’s favorite method of payment. But times are changing fast.
The recent demonetization move by the center government has impacted the COD business for all eCommerce sites in India. This particular consequence of the demonetization comes as no surprise. And what also comes as no surprise is the eCommerce websites getting in a hurry to promote electronic payment methods.
Kunal Behl, cofounder of Snapdeal recently voiced the concern.
“There is a short-term dip in the COD business mode. Specifically, discretionary purchases have taken a dip,” Bahl told reporters at IIM Calcutta here today.
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.
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 convenience the customers who had ordered on the COD mode, Snapdeal had been insisting to make payments using Freecharge e-wallet.”For the last three to four days, we are seeing good traction in this”, he said.
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