THE IMPACT OF DEMONETISATION ON E-COMMERCE PLATFORMS
The unanticipated demonetization of rs 500 and also rs 1000 in India was a big blow which no one saw coming. The country is still in the process of recovering and businesses, including the eCommerce sector has been affected greatly. Some people were happy about it and saw it as a step in the right direction against counterfeiting currency, black money, and even terrorism. Others yet were not so excited about it.
This change has affected eCommerce businesses as a result of orders not being delivered. Many customers after choosing the cash on delivery system, still offer old notes for payment. Of course, the cashless services are now being patronized more due to the economic change, but still, the orders that have already been made, are now hard to complete because of the cash on delivery system that was already chosen.
Online payments have gone up greatly in the light of the change, but so has the number of online orders that have not been delivered. Owing to this, these platforms have seen a lot of returns because the customers who made the order and requested the cash on delivery system, insist on paying with the old currency and if not, they request for the order to be returned.