Cash on Delivery, or COD, is a payment strategy in which the customer pays for their purchase when the product is delivered to their doorstep. This method has become increasingly popular in India’s e-commerce market as it eliminates the risk of fraud and provides more assurance to customers that their payment is secure. According to Gokwik, a leading payment gateway in India, COD currently accounts for nearly $30 billion of India’s e-commerce market.
This trend is being driven by the fact that India is a largely cash-based economy, and many customers are unfamiliar with online payment methods such as debit or credit cards. As an outcome, customers are more likely to opt for COD when making purchases online. Additionally, a large portion of India’s population is unbanked, indicating they do not have access to traditional banking services, so COD is the only viable payment option for many.
The growth of COD has been further fueled by the rise of e-commerce in India, with the country now being home to a number of large online marketplaces such as Flipkart, Amazon, and Snapdeal. These marketplaces typically offer COD as a payment option, making it easier and more convenient for customers to purchase products online.
In addition to the convenience factor, COD also provides customers with more assurance and transparency when it comes to making payments. For example, customers can inspect the product before they pay for it, reducing the risk of fraud. Additionally, customers can also track their orders, ensuring that they receive their products on time.
Despite the popularity of COD, it is not without its drawbacks. For one, COD is more costly for e-commerce businesses due to the additional costs associated with handling cash. Additionally, COD payments can also be subject to delays, which can impact the customer experience.
Despite the challenges, the growth of COD in India’s e-commerce market is a testament to the fact that customers are increasingly comfortable with online shopping. As online payment methods become more commonplace, it is likely that COD will continue to play an important role in India’s e-commerce market. This trend is also likely to be further reinforced by the government’s push to promote digital payments, which should make online payments more accessible to a wider range of customers.
In conclusion, COD is a popular payment method in India’s e-commerce market and currently accounts for nearly $30 billion in transactions. This trend is being driven by the fact that India is a largely cash-based economy and many customers are unfamiliar with online payment methods. Additionally, the rise of e-commerce in India has made COD more accessible to customers and provides them with more assurance and transparency when it comes to making payments. Despite the challenges associated with COD, it is likely to remain a popular payment option in India’s e-commerce market.