BLACK MONEY

Market expansion

Experts say the demonetisation would encourage more merchants to sell their products through e-tailers. Also, e-tailers are not likely to drop the cash on delivery option, as it is popular among customers.

Said Alok Shende of the Mumbai-based Ascentius Consulting: “COD may have a temporary setback but will be back when the new currency notes come in. Many customers may also, for the time being, use their cards as many delivery boys carry card swiping machines with them.”

According to RedSeer Consulting, a research and advisory firm, nearly 70 per cent of customers buying goods online pay cash on delivery. Said its CEO Anil Kumar: “There are two types of customers opting to pay through COD. Type 1 are those who use COD mode out of need, and these customers might opt out of online shopping for the time being. Type 2 customers use COD out of choice, and are likely to shift to online modes of payment, especially with companies providing incentives for those. Overall, the share of Type 1 shoppers is not high, and we believe there will not be large-scale impact in the short term.”

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