Flipkart, Amazon prepare for sales impact amid withdrawl of notes

NEW DELHI/BENGALURU: Online commerce companies are bracing for a drop in sales in the near - term as they begin to accept cash only in the form stipulated in the union government's demonetisation scheme announced on Tuesday night.

Amazon India stopped accepting cash-on-delivery on Wednesday, while Flipkart and Snapdeallimited such orders to below Rs 1,000. These companies also stopped accepting old denomination notes of Rs 500 and Rs 1000, asking customers to instead use electronic payments or keep valid currency at hand.

These measures have impacted daily operations according to company executives ET spoke to, as companies ranging from the country's largest online retailer- Flipkart - to food discovery and delivery portal Zomato accept cash for an estimated 60-70% of orders.

A representative for Amazon said the company is "working on alternatives to make doorstep payments easier for customers by introducing a variety of electronic payment options."