Hit by the currency ban? Let customers ‘pay later’
The shock currency ban imposed last week has had major ramifications for the entire e-commerce industry. In the first few days, merchants and sellers across all categories have reported declines in sales — from 10% to 90% depending on category. Not surprisingly, those worst hit were the sellers most exposed to COD.
As the queues at ATMs and banks across the country lengthen and consumers household expenses use up the meagre cash reserves people have — it doesn’t look like we will see a re-bound in orders in the near term.
Many in the industry are predicting at least three months of depressed sales — perhaps more, depending on how smoothly the roll out of the new currency is handled and how badly consumer confidence is hit.
What can you do in the mean time to ensure you don’t slow growth in your business? And is it even possible to turn this difficult time into one of strength — where you can stand out amongst the competition?
Cashless is King
One option is to offer more cashless payment options — but not just wallets, which we all know have their challenges when it comes to larger ticket size orders. ZestMoney is an option that not just helps the customer in times of cash-flow shortage, but also helps you increase transaction size if used effectively.
ZestMoney is a Bangalore based company, founded by payment industry veterans and backed by some of the largest fintech investors in the world.
ZestMoney effectively enables a “cardless EMI” — customers can make a big purchase, by paying only a tiny down-payment (via PayU payment gateway) and then splitting the cost over subsequent months, deducted directly from their bank account.
Customers feel more confident making larger purchases this way and will even up-scale their transaction when they know this option is available. ZestMoney also leads to a far lower return rate, faster cash collection cycle and can increase customer loyalty and retention.
According to one of ZestMoney’s partners “We have seen a tremendous increase in sales after implementing ZestMoney. With quick integration of Zest, we have been able to add wings to the dreams of our travelers who did not like using credit card”
ZestMoney can take as little as one day to integrate, depending on your technology platform. They provide a full merchant dashboard and reporting to make your life easier.
So if you’re struggling without COD, reach out to the ZestMoney team at Partners@ZestMoney.in, or simply go here: http://zestmoney.in/merchant/.