Why ‘Cash-on-delivery’ is mostly preferred in India?

Cash-on-delivery also known as Collect-on-delivery in mostly preferred in India. Recently conducted Nilsen Global Connected Commerce Survey, Q4 2015 shows 83% of Indian people prefer COD as a payment method while shopping on e-commerce website such as Amazon, Flipkart, Shopclues, Myntra, Snapdeal, Infibeam and many more. Survey shows that globally credit cards are on the top of all payment methods. About 53% of online buyer prefer credit card. Emerging markets such as India, United Arab Emirates, Russia, Philippines, Saudi Arabia and Nigeria popular payment mode is Cash on delivery.

India – 83 %

Saudi Arabia- 59%

Russia- 70%

UAE- 68%

Philippines- 73%

 

Reasons (why COD is preferred?)

1. Credit card penetration is low

2. More than 65% of Indians feel that e-commerce sites will not keep their personal information secure and card details/Banking details confidential.

3. Many incidents of not getting original product in India lost the trust of buyers. So people want to see product first and then pay.

4. If product is returned by a customer, it takes too much time to be refunded by banks and respected websites.

5. Many a times younger brother orders something at an address of their well earning elder brother or sister and concerned person didn’t even know what is inside package. After a call to his/her young one usually cash is paid and product is bought. 

6. Many Indians feel that until we pay cash physically, we will not know its importance. It hurts when cash is out flowed from you.