e-commerce platforms in India

“COD” the emerging concern for e-commerce platforms in India

Cash on delivery option in ecommerce platforms has been up for debate for quite a while, in India, 83 percent prefers to use cash on delivery as a payment method for online purchases. Consumers still hesitate to use credit cards because of risk of online fraud. There are three stakeholders that come into play when it comes to the COD debate, the customers, retailers and the Indian government.

 

India’s government has made every effort to reduce cash on delivery and promote digital payments to improve the economy. After implementation, the Cash for Delivery option was pause for most e-commerce players in India. But within fourteen days of the announcement they were too quick to re-insert it. What makes it clear is that for a country such as India where people are comfortable with using cash payments tackling this issue will be a challenge.

 

While the world advances towards bitcoins and online money transactions, customers in India are very reluctant and stick to trusting the traditional methods of cash payments. Regardless this claim cash on delivery is quite convenient from a consumer end. It caters to the fear of online frauds and reliance on credit and debit cards. Customer satisfaction is the key determinant in this scenario, they get to see the product in person before paying and can order without having to worry about cash on hand, until the actual delivery.

 

COD is suitable for customers but is extremely problematic for retailers and vendors. Courier companies charge above the regular charges for delivering COD orders. Cost increases even more when marketplaces and logistics companies claim courier charges for returned products. It often takes months to reach the seller, if there is no demand for reimbursement or return policy. This disrupts cash flow, as orders like these take longer to close. Retailers also believe that COD orders are generating significant product returns and purchasers give foolish reasons in comparison to those using digital payment methods.

 

Some e-commerce companies like Shopify have adapted policies that safe guards these rising concerns, rather than businesses losing customers over not offering COD. With Shopify’s advance cash on delivery app which is made functional within India for its customers and retailers’ satisfaction. This app enables retailers to fix a pricing range on delivery orders for cash. Specify the postal codes where the delivery cash will be offered. To create custom rates for all such delivery orders. Add an available tracker on the topic of your store and let your customers check the eligibility of your postal code on delivery cash. Shopify maintains bridging the problem many international e-commerce platforms have faced and would interchangeably in the future.