• THE INFLUENCE OF DEMONETISATION ON E-COMMERCE PLATFORMS

  • India has not fully recovered from the sudden demonetization of its Rs 500 and Rs 1000 notes.
    A big change happened in the practice of every business, the e-commerce market is not an exception.
    This demonetization is one of the most substantial changes in the Indian economy with Indians having gone through common shocks.
    Some supported it from the stance that it combatted black money, currency counterfeits and terrorism.
    On the other hand, some others created ahue and cried against it.
    It was a change that had agreat impact on trade and consumer demand.
    Debates are still ongoing on the issue of demonetization.
    The e-commerce platforms are burdened by undelivered orders because a huge number of customers that opted for cash on delivery are tendering the old currency notes.
    This sudden economic change which led to an increased use of cashless service did not ease the stress of the e-commerce platforms.
    They are still struggling with the completion of orders designed for cash on delivery.
    Yet again, digital payments have been on the rise.
    Notwithstanding the number of undelivered products from online purchases still rose.
    This has all led to large returns because many of those that chose cash on delivery mode of payment implore the delivery person to agree to take the old currency notes or return the order.
    The sudden demonetization policy led these e-commerce platforms to stop the cash on delivery mode of payment.
    That alone accounts for about 60% of their online shopping in the nation.
    This was particularly as cash on delivery was a widespread payment method for a huge section of Indian consumers that make purchases online.
    It is widespread because of the pure ease it brings to them knowing they don’t have to pay till they receive their order.
    In order to make up for these changes, these e-commerce platforms introduced payment by credit card on delivery as one of the options.
    This provided some ease to customers who were running out of cash.
    Some further discounts were offered by prominent websites on online purchases as well as EMI schemes that are zero cost.
    A spokesman for Amazon had said that the company has grown ten times more because of the payments by credit card on delivery.
    Notwithstanding, this is of little help to sellers complaining of the insufficiency of the efforts since it still doesn’t compensate for the losses incurred over the cash on delivery payment option.
    Without adoubt, these businesses will deal with a certain level of inconvenience, especially in the beginning stage.
    However, in the nearest future, there is still hope for a better growth, a decline in the cash on delivery mode as well as a rapid return on investments.

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