PM Modi shook the whole nation when he announced that the higher denomination notes (Rs.500 & Rs.1000) are being replaced. This decision has turned everything upside down. One of the major effects of this decision is that the electronic stores like Amazon and Flipkart have started a no cash on delivery policy.
No cash on delivery? How?
Amazon and Flipkart quickly developed a huge customer base in India owing to their flexible cash on delivery options. Now, they have temporarily suspended that option on the purchase of smaller items which cost less than Rs.1000.
We ourselves tried to order a case for a mobile phone but it displayed “Cash on Delivery temporarily not available.” This is not good news as many people prefer the COD option for making purchases.
No cash on delivery means all the online players like Amazon, Flipkart, Snapdeal etc are going to see a massive downfall in their sales volume.
An Amazon spokesperson said, “Currently, we have temporarily stopped cash as a payment option for new orders.” For those people who ordered before the November 8 announcement, they can either make the payment via credit/debit card or with the remaining valid currency.
The Bengaluru-based Flipkart, which is also Amazon’s arch-rival, has restricted the cash on delivery option to some items under the Rs.1000 mark.
Why no cash on delivery?
This decision has been made in order to help the customers in saving the smaller denominations notes for essential daily expenditure. So, in a way, they also have a no cash on delivery policy.
Flipkart also urged the customers to use other options of payment. These include net banking, credit or debit card, gift cards as well as company’s own PhonePe Wallet .
A Flipkart representative said, “We are also working on a slew of measures to help customers easily transition from cash to digital payments.”
That is all for now. Stay tuned as we will keep you posted in case there are any changes or updates in the no cash on delivery policy.