Why we Decided to Offer COD on Customized Products

Ecommerce has revolutionized the way people shop, making it easier and more convenient than ever before. However, in India, cash on delivery (COD) is still a popular payment method for online purchases. COD allows customers to pay for their order in cash at the time of delivery, rather than using a credit card or online payment system. In this blog post, we will discuss why COD is crucial for ecommerce in India.

1. Trust Factor

One of the biggest reasons why COD is important for ecommerce in India is because it builds trust between the customer and the seller. Many people in India are still hesitant to provide their credit card details online, especially for new or unknown sellers. COD eliminates this concern as customers can pay for their order only after they have received and inspected the product.

2. Convenience

Another advantage of COD is that it is more convenient for customers who do not have access to online payment systems or do not have a credit card. In India, a significant portion of the population still does not have access to online payment systems or prefers to use cash. COD ensures that these customers can still enjoy the benefits of online shopping without any barriers.

3. Low Penetration of Plastic Money

In India, the penetration of plastic money is still relatively low, with only around 50 million credit card users in the country. This means that many people still prefer to use cash for their transactions. By offering COD, ecommerce companies can tap into this huge customer base and increase their sales.

4. Reducing Returns

COD also helps to reduce the number of returns and cancellations as customers are more likely to be satisfied with their purchase if they have had the chance to inspect it before paying. This is particularly important in India where return logistics can be challenging, especially in rural areas.

5. Better Cash Flow

Finally, COD is beneficial for ecommerce companies as it provides them with better cash flow. Since the payment is made at the time of delivery, the seller receives the payment immediately, rather than having to wait for the payment to clear through a third-party payment gateway.

In conclusion, cash on delivery is crucial for ecommerce in India as it builds trust, provides convenience, taps into a huge customer base, reduces returns, and improves cash flow. While other payment methods are also gaining popularity in India, COD remains a crucial payment option for ecommerce companies to reach a wider audience and ensure customer satisfaction.