COD business hit by demonetisation, says Snapdeal

KOLKATA: The recent demonetisation 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.

Bahl said that the dip was temporary in nature and it would again take a sharp upturn shortly. With demonetisation, 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 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," 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".