Demonetisation hits COD, Snapdeal promotes wallet payment

50% of its sales comprises of the cash on delivery mode which took the brunt of marginal decrease in sales

With its sales marginally hit by the ongoing demonetisation phenomenon, India's third largest e-tailer, Snapdeal is promoting usage of its wallet.

The company has now equipped its product delivery personnel with manuals on how its customers who have opted for COD can use the mobile wallet to make the requisite payments for their purchase.

"We are actively promoting people to use Freecharge (its mobile wallet) to make the payments", the company's co-founder Kunal Bahl said.

Fifty percent of its sales comprises of the Cash on Delivery (COD) mode which took the brunt of marginal decrease in sales.

"COD comprised of 70 per cent of our total sales previously which has now come down to 50 per cent of the total sales. This move (demonetisation) will definitely make customers prefer the prepaid mode",

It's prepaid portfolio has remained buoyant in the time of demonetisation, however Bahl admitted that COD, like any other discretionary approaches has taken a "marginal hit."

"However, this is a temporary phenomenon and things will take a turn soon", he added.

Bahl however, is viewing the demonetisation move to help e-commerce comapnies like Snapdeal in the long run.

"Once a customer opts for prepaid mode of payment, he never returns to the COD mode of payment", he added.

Other e-commerce platforms like Myntra are offering spot debit and credit card payments for COD during the period of demonetisation.

Trust issues with online purchases and delivery prompts people to opt for the COD model of payment.