on 15 December 2021 / 0

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2020 pandemic came as a nasty surprise for many businesses, leaving them grasping for breath. There was one industry though, which not only survived the pandemic but also bounced back faster than others – E-Commerce.

Indian E-Commerce industry is growing at a phenomenal rate and will keep growing at 27% CAGR over 2019-24 to reach at $100 Billion, according to Indian Brand Equity Foundation (IBEF).

The backbone of all this is India’s rapid march towards digitization and internet penetration. According to IAMAI-Kanter ICUBE 2020 report, the number of India’s active internet users is set to increase by 45% in the next five years to reach 900 million users by 2025.

This means more and more people are getting comfortable with technology and shopping online. From grocery to electronics to fashion items, Indian E-Commerce industry is growing by the day, bolstered by the deeper expansion into the country’s rural area which was untapped until now. As per CMS Infosystem report published in Times Of India, a whopping 90% of the new customers pay through Cash-On-Delivery mode.

However, online shopping also brings along some challenges and insecurities for the consumers –  Failed transactions, data theft, online frauds, fake apps, unstable and unsecured data connection etc. To address this very valid concern and give comfort to consumers, many E-Commerce companies offer COD (Cash-On-Delivery) service.

Pay On Delivery or COD instantly turned out to be a game-changer because Indian customers like to see, touch and feel the product before paying for it. This is highlighted in the fact that before Covid-19, 41% of online orders were paid through COD and as per Nielsen’s Global Connected Commerce Survey published on Business Insider, 83% Indian consumers still preferred Cash-On-Delivery as a mode of payment for online shopping.

What is Cash On Delivery (COD)?

Cash-On-Delivery is a payment method offered during online shopping wherein consumer choses to pay for a purchase at the time of order fulfilment, instead of paying for it in advance. This method is also commonly called as Pay-On-Delivery or Cash-On-Demand. Consumers don’t necessarily need to have a bank account or a credit card to place an order online. They can simply pay through cash or a QR Code. Apart from this, if a product is undelivered or not paid for, it gets returned to the merchant, helping reducing customer anxiety.

Why is Cash-On-Delivery or Pay-On-Delivery so important for online businesses?

  • Customer Comfort – Not all consumers are comfortable with sharing their banking details on a shopping website so it is advisable to offer them COD where they can place and order and pay in cash once they receive the product.
  • Trust Factor – Customers might be comfortable with big and popular online shopping portals but they don’t trust the newer or smaller app/portals easily. The best way to earn customers’ trust and loyalty is to offer them COD. Once they receive the product and are satisfied with the process, they’re more likely to order again.
  • Increasing Sales – COD is a potent tool for order completion. Many customers select the products and put them in cart but get anxious during payment process, leading to cart-abandonment. Offering Cash-On-Delivery service at payment stage ensures that customers complete the shopping process as they don’t have to pay upfront. Customers also indulge in impulse purchases when they have the choice of buying something and paying for it later, leading to increased sales.

Choosing ECOM EXPRESS as your preferred logistics partner

Offering COD comes with fair bit of challenges for online sellers. That’s why its very important to engage with a credible logistics partner. Ecom Express is one of the oldest and largest e-commerce logistics providers with robust systems, automated processes, and 2-day COD remittance. With vast experience of handling and processing Cash-On-Delivery payments, Ecom Express is the preferred partner for many small and big online sellers. This is testimony to the fact that more than 70% of the total shipments handled by Ecom Express are Cash-On-Delivery.


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