Demonetization move has marginally hit COD business, says Snapdeal
Snapdeal founder Kunal Bahl said that the demonetization move has caused a short-term dip in the Cash on Delivery business especially as discretionary purchases have fallen.
The recent demonetization move by the Centre has marginally hit the Cash on Delivery (COD) payment business of e-commerce major Snapdeal, its co-founder Kunal Bahl said on Monday.
"There is a short-term dip in the COD business mode. Specifically, discretionary purchases have taken a dip," Bahl told reporters at IIM Calcutta on Monday. 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 ensure convenience to 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," Bahl said. Traditionally, COD 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".