Why ID Verification is Key for Alcohol E-Sellers
The Indian government’s decision to permit the sale of liquor has come as a sweet relief to alcohol aficionados across the country, especially considering we are merely emerging from the shutting down of all liquor establishments which had led to an extra dry summer.
The liquor industry is hit hard this year; every year, March to June is the peak season for liquor sales, generating 40% of the year’s revenue [1] for the retailer, as well as the State. State excise duties on liquor is the second or third largest contributor of approximately 10-15% to the State’s Own Tax revenue[1]. As soon as the central government allowed the sale of liquor during the lockdown, the long queues outside each store, the stories of “very large” transactions, and a subsequent flouting of all social distancing norms bore testimony to the customer demand for liquor (as an essential item), along with the inherent risks associated with liquor sales. States were quick to roll back the permissions, while they figure out alternate mechanisms. Allowing home delivery of liquor – whether through online sales or through direct sale by liquor shops has emerged as a viable idea. Chhattisgarh and Punjab have already gone ahead and allowed specific partners to enable liquor sale online[2].
Selling liquor online is the perfect solution to ensure social distancing and other precautionary measures. This could help maintain social distancing norms while generating additional business for retail outlets. [2]
From where we see it – there are three huge risks of allowing liquor sales in the current scenario (especially online):
- Social distancing – home delivery allows us to manage social distancing.
- Health practices – Most restaurants and open businesses are actively talking about the norms they follow for best health practices – infrared thermometers, cleanliness, use of sanitizers, etc. Liquor businesses are not known to follow these.
- Identity risk – Alcohol cannot be sold to under-age customers. And neither can (or should) it be sold above certain volumes.
With KwikID, at least the identity assessment and risk can be managed. Right from age-restriction checks, geo-fencing, address verification, VCIP Digital KYC solutions – KwikID has been designed for Regulated Entities, and has adapted itself to similar and simpler customer onboarding.
Using inbuilt functionalities like OCR, face match & real-time verification/authentication of government-issued documents, Kwik.ID enables the customer verification journey to be completed within a minute.
The age verification can be completed with just 2 simple steps:
- Take a selfie
- Provide valid government-issued ID proof like Aadhar, PAN, Driver’s license, Voter ID or Passport
Enabling alcohol sales through technology is a great idea. It helps keep these liquor shops viable, their staff employed, people happy, and state funds flowing. For delivery apps, liquor as a category increases the average order value and generates higher customer retention. Using smart Digital KYC partners like Kwik.ID can curtail the risk of delivery to underage customers, ease the verification process for retailers, reduce the task of delivery agents at the doorstep of the customer & enhance customer experience thereby creating a win-win situation for retailers, delivery apps and customers.
To know more about Kwik.ID’s seamless e-KYC solution, please write to
info@getkwikid.com.
[1] https://indianexpress.com/article/explained/explained-why-states-are-so-keen-about-excise-duty-on-liquor-6393643/
[2]https://www.deccanherald.com/business/coronavirus-lockdown-30-liquor-industry-demands-govt-to-allow-online-sale-home-delivery-of-booze-833485.html