The number of online purchases that return undelivered to Flipkart, Amazon and Snapdeal has shot up by more than 50% since the demonetisation of high value currency notes, with many consumers who opted for ‘cash on delivery’ or COD offering only old notes.

Online sellers say even many of those consumers who made their orders on cash on delivery mode after the demonetisation announcement are asking delivery boys to accept scrapped Rs 500 and Rs 1,000 notes or take back the parcel. This has led to a spike in returns. “This is a further loss to us as Snapdeal and Amazon charge us shipping fees on such orders,” said a spokesperson of All India Online Vendors Association (AIOVA) that represents 1,500 online sellers.

E-commerce marketplaces had stopped COD — which accounted for 55-60% of online shopping in the country — immediately after the demonetisation announcement, but subsequently started it again with new notes. High product return rate is a double whammy for online sellers as sales are down by up to 70% since the demonetisation drive, the AIOVA spokesperson said.

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