1. Rs 500, Rs 1000 notes ban: E-commerce companies Snapdeal, ShopClues see big drop in cash on delivery orders

Rs 500, Rs 1000 notes ban: E-commerce companies Snapdeal, ShopClues see big drop in cash on delivery orders

E-commerce firms have seen a substantial drop in cash on delivery orders in the wake of demonetisation which has also impacted their overall sales, executives of different companies said on Wednesday.

By: | New Delhi | Published: November 17, 2016 6:23 AM

E-commerce firms have seen a substantial drop in cash on delivery orders in the wake of demonetisation which has also impacted their overall sales, executives of different companies said on Wednesday.“Earlier, the split between cash-on-delivery and pre-paid orders was 50:50. Since demonetisation, the number of orders under cash-on-delivery has reduced from 50% to 30%,” Kunal Bahl, CEO, Snapdeal said.

Similarly, ShopClues has seen an overall decline of 7-8% in its sale since November 8 when the demonetisation came into effect. Sanjay Sethi, CEO, ShopClues said, “Before demonetisation, 30% of the orders were placed under CoD, which has now dropped to 15%. Also CoD orders have declined more in the metros compared to tier 2 and 3 cities”.

The number of CoD orders for Flipkart has also dropped, but Sanchin Bansal, executive chairman of the company pointed out that situation is slowly getting better as consumers are returning online to shop.

To cope with the situation and urge consumers to use cashless means to transact, e-tailers are tying up with several payment wallets. For instance, Freecharge claims a 12 times overnight jump in the average wallet balance, post the announcement. Freecharge has tied up with over 100,000 online and offline merchants like Snapdeal, Bookmyshow, Swiggy and others.

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