Online retail majors Amazon, Flipkart and Snapdeal have suspended their cash on delivery option after the government’s order to demonetise high value currency notes of Rs.500 and Rs.1,000.
While Amazon has stopped the cash option for now, Flipkart and Snapdeal have capped it at Rs.1,000 and Rs.2,000 respectively. The companies said in separate statements.
Cash-on-delivery is the most popular mode of payment for online customers and accounts for 70 per cent of e-commerce business. Most companies said they would come back with more features.
“We have temporarily stopped cash as a payment option for new orders. Customers that had already placed CoD orders before midnight on 8 November can pay for their orders using debit or credit cards or currency of valid denominations.
“For future orders, we are working on alternatives to make doorstep payments easier for customers by introducing a variety of electronic payment options. We will shortly reintroduce cash payment on delivery,” an Amazon spokesperson said in a statement.
Flipkart also said they were also working on a slew of measures to help customers easily avail transition from cash to digital payments.
Snapdeal has given its customers an option to defer deliveries. All the e-commerce companies are encouraging their customers to pay through credit or debit card at the time of delivery.