E-coms take the discount route to tide over demonetisation

As sales dipped by almost half post demonetisation, e-commerce companies have started offering heavy discounts on products to shore up their businesses. As a first reaction to the retrieval of high-value currencies, e-commerce companies including Flipkart, Amazon and Snapdeal stopped taking cash on delivery orders. While Amazon offered a 40 to 70 per cent discount in the fashion category, India’s largest online fashion retailer Myntra offered an additional 25 per cent discount on purchases above Rs 1,299 paid through debit and credit cards. Snapdeal is offering up to a 50 per cent discount on a host of items including mobile phones, television sets and laptops, among other electronic products, and up to 70 per cent on various home furnishing items.

Ecom major rue people are coming online but are taking time on browsing. They buy socks but not shoes worth Rs 3000 yet. Sales of high-value items such as mobile phones have still not picked up due to the negative sentiment arising out of demonetisation. High average selling price products are still lacking demand. Leading e-commerce companies typically register about 13 to 15 percent returns but that has doubled since the demonetisation decision. Cash on delivery volumes were down nearly 60 per cent in November post demonetisation.