Cash On Delivery Case Study

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It may begun well when King charles I of England introduced postal sevices for the citizens in 1965. At that time there were no stamps and the cost postage was beared by the recipient. Cash on delivery can be said as the moden avatar. It is said cash on delivery is one the reason for the biggest success of e-commerce in India. According to Earnst & Young (Young) Cash on delivery in India accounts for 50% to 80% of online transactions that take place in India. This mode of payment is available in more than 600 cities and towns and it is growing at a rapid pace. (YOUNG, 2014) There are many reasons behind why Cash On Delivery is popular in India. One is that in India Credit card penetration is low. As per former RBI governor D. Subharao said, that” in comaprison to ther emerging markets such as Russia, Mexico …show more content…

Cash On Delivery bridges the gap between online retail and brick-and –mortar retail as it allows the customer now to feel the actual product before they make the final purchase. Cash On Delivery has helped unlock the huge demand. Trust is a driver for Cash On Delivery. Cash On delivery is great marketing stunt as companies have realised that Indians have extreme preference for Cash On Delivery. According to Audit Firm KPMG still accounts for 60% of transactions. As per financial advisory firm Motilal Oswal, “the number of mobile wallet users is estimated to jump five-fold from the current 3 crore to 15 crore by 2019, COD still accounts for 60% of all e-commerce orders”. (KPMG, 2014) These facts shows the importance of Cash On Delivery in India. Whole of ecommerce model can witness a downlfall if Cash On Delivery mode of payment is taken out. Cash On delivery has helped ecommerce grow, but it does have pitfalls. Theses companies are growing at rapid pace, but these companies heavily depend on COD for sales which remains worrisome, particularly since these online firms are still not into

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