Demonetisation: Amazon’s cash on delivery service back on track
Major e-commerce player Amazon India has resumed its cash on delivery (CoD) service, two days after it halted the option following the government’s withdrawal of Rs 500 and Rs 1000 notes.
After the government’s demonetisation move, the e-commerce companies have felt the heat of the decision as Cash on delivery forms anywhere between 70 and 90 per cent of e-commerce players’ revenues.
Many other ecommerce companies experienced drop in sale. Following the demonetisation announcement Flipkart and Snapdeal limited CoD orders to below Rs 1,000. E Commerce companies including food ordering portals are working on alternatives to make doorstep payments easier for customers by introducing a variety of electronic payment options.
As banks and ATMs are running out of cash, Finance Minister Arun Jaitley on Saturday made it clear that it will take at least two weeks to get the situation under control. E commerce companies are now feared that the business will get impacted over next few weeks.
Amazon India has said that it will allow customers to pay using credit and debit cards at the time of delivery of the order. From Friday the company has reintroduced the CoD option to pay at the time of delivery.
The company spokesperson said that the delivery agents have been trained to help customers who opt for card payments at the time of order delivery or valid currency notes, including the newly introduced Rs 500 and 2,000 notes.
The company has seen hike in the electronic payments by 10 times in the last two days which, company says, is an indicator that customers are able to adapt to electronic payment methods when cash is constrained. Taxi aggregator Ola said also saw a 15-fold increase in number of wallet recharges.
The company has launched a new offer to incentivise customers to make cashless transactions. Customers can load their Amazon gift card balance and get an incentive of 15 per cent/Rs 300 (maximum) discount at checkout.