E-commerce Firms Issue Advisories, Restrict COD Orders  

E-commerce companies are struggling to handle cash on delivery - Sakshi Post

New Delhi: E-commerce companies are struggling to handle cash on delivery (COD) orders, following the government's decision to demonetise Rs 500 and Rs 1,000 currency notes, with firms like Amazon and Paytm temporarily halting the facility for customers.

Some companies like Uber and BigBasket have issued advisories urging customers to pay in lower denominations, while others like Flipkart and Snapdeal have set limits to the value of orders that can be delivered through COD.

According to industry estimates, about 70 per cent of the shoppers opt for cash while buying a product.

Amazon India spokesperson

We have temporarily stopped cash as a payment option for new orders. Customers who had already placed COD orders before midnight 8/11 can pay for their orders using debit or credit cards or currency of valid denominations (at the point of delivery). The company is working on alternatives to make doorstep payments easier for customers by introducing a variety of electronic payment options for future orders.

Flipkart and Snapdeal have capped COD orders to Rs 1,000 and Rs 2,000 respectively, and asked customers to pay using lower denomination notes. Shopclues CBO Radhika Aggarwal said the company is accepting COD orders upto Rs 999 in government-approved denominations.

In a major assault on black money, fake currency and corruption, Prime Minister Narendra Modi on Tuesday took the nation by surprise by announcing the demonetisation of Rs 1,000 and Rs 500 notes with effect from midnight, making these currency papers invalid.

Saurabh Vashishtha, Vice President at Paytm, said the company has also temporarily disabled COD orders to avoid inconvenience to consumers at the time of delivery. He added that over 98 per cent of items bought on its platform are through wallet and other pre-paid payment instruments.

While customers of Flipkart will be able to pay for their orders in cash, the Bengaluru-based company has set a limit of Rs 1,000 on the same.

We are no longer accepting COD payments in Rs 500 and Rs 1,000 currency notes. In order to enable customers to conserve smaller denomination notes for daily essential use, we are restricting COD on orders below Rs 1,000.

They added that customers are being urged to opt for alternative payment modes like internet banking, credit and debit cards, gift cards and PhonePe wallet. We are also working on a slew of measures to help customers easily transition from cash to digital payments, the spokesperson said.


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