Moneycontrol
Nov 17, 2016 11:45 AM IST IST | Source: Moneycontrol.com

Demonetisation will be good for business: E-commerce honchos

Post demonetisation of high value currency notes, e-commerce players have witnessed sharp decline in their business. According to industry estimates, about 70 percent of the shoppers opt for cash while buying a product.


Moneycontrol Bureau


India’s e-commerce honchos including Flipkart cofounder Sachin Bansal, Snapdeal CEO Kunal Bahl, Shopclues CEO Sanjay Sethi, PrimeVenture Partners Sanjay Swami and Vishwas Patel, founder CEO of CCAvenue, 1MG founder Prashant Tandon and Ola COO Pranay Jivrajika today jointly welcomed the move to ban Rs 500 and Rs 1000 notes by PM Narendra Modi.


In a panel discussion moderated by Arvind Gupta, Founder, Digital India Foundation on ‘India going digital and cashless,’ the CXOs expressed hope that the negative short term impact of demonetisation on e-commerce industry will phase out soon.


"There is a short term drop in the business due to demonetisation. We expect it to make our business efficient in long term," said Flipkart’s co-founder Sachin Bansal.

“Cash on Delivery (CoD) was always a temporary move when we started up. Digital payments is the future. It is having a very positive impact already on our business,” he added.


However, Flipkart, Snapdeal and Shopclues declined to disclose the short term percentage drop in transactions.


Talking about other benefits of PM Modi’s move, Prashant Tandon of 1MG Technologies said that in case of cash it was easy to get away fake medicines. "Digital payments will help address this issue and reform the pharma industry," he said.


Post demonetisation of high value currency notes, e-commerce players have witnessed sharp decline in their business. According to industry estimates, about 70 percent of the shoppers opt for cash while buying a product.


Taking advantage of the situation, it was Snapdeal which first introduced ‘wallet on delivery’ with the help of its subsidiary Freecharge.


Expressing his views, Snapdeal’s Kunal Bahl said, “It is ground breaking for our nation. It require tough bold decision which this government has taken. We are all thrilled about it. CoD can be replaced with ‘card on delivery’ or ‘wallet on delivery’.”


“15 percent of our transaction is already on wallet on delivery,” he claimed.


Sanjay Sethi, Co-founder and CEO, Shopclues said, “I grew up in an era where population was always a problem. Now, it is becoming our biggest strength. The opportunity is huge and hiccups are temporary.”


“It has incentivised sellers to move digital than rely on cash for trading,” he added.


Speaking about impact on business, Bansal said, “There has been a little bit drop in sales, which overtime will pick up.”


"There will be an impact on topline in the short term in the next 60 days, however it will have a very lasting impact on bottomline in the long run," Sethi said. 

Representatives of Ola, and Oyo Rooms also expressed support for Modi's demonetisation.

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