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The country is still recovering from the sudden demonetisation of Rs. 500 and Rs. 1,000 notes. Business everywhere has seen a change in its routine, and the ecommerce industry hasn’t been spared either.

Browntape takes a look at how the move has affected Indian online sellers and the potential future impact on the ecommerce industry.

The low points

 

Director Monica Peart said, “This new system will lead more people to use traditional banking services like credit cards, which is a key factor in allowing consumers to buy online but it will take time for this kind societal change to take effect, so our forecast numbers for the out years are still lower than previous estimates.”

 

 

“This month is extremely important for business. If we fail to catch up, we won’t be able to achieve the year-end target,” rues Sanjay Thakur, president of eSeller Suraksha.

While pointing to the low morale that could also impact the situation, Satish Meena, forecast analyst at Forrester Research says, “Post Diwali, the e-tailing industry was looking forward to this month and the early days of January next year, when there is festive euphoria among people. However, considering the cash reality on the ground and the mood of buyers, e-tailing companies will not be able to meet the target of this quarter and the next.”

The winning points

However, it is not all gloom and doom. Some good has come out of all this hullaballoo.

 

Sanjay Sethi, CEO of Shopclues, said that there was a drop in sales, however, “our business from smaller towns and cities has seen a 15% increase.”

He said, “There is homogeneous positivity from the investors community because typically investors are long-term oriented. And, their response is: This (demonetisation) is going to have positive impact on the industry and also on the company.”

While there will be an initial inconvenience, in the long run, everyone is hopeful of a better growth, reduction in CoD, and a quicker return in investment.

Do you think the demonetisation drive will be beneficial or detrimental to Indian ecommerce? Let us know in the comments section below. If you need help with your ecommerce needs, contact Browntape. We are India’s largest ecommerce services provider, and can help you manage your online business.

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