BENGALURU: When it comes to online shopping, a majority of buyers still prefer cash on delivery (COD). Experts said the entire ecommerce industry must collectively take a call to put a price on COD, as cash handling charges is a solution without shaving off profits. A report published by Statista shows over 60% of online shoppers in India still prefer COD as a payment method for online purchases.
Saksham Bhagat, co-founder and CEO, Swift Money, at the Internet Commerce Summit 2023 event said COD stands as a double-edged sword in the rapidly growing landscape of the industry. “From a brand perspective, it is necessary especially for growing brands as they acquire customers continuously.
There is a cost to it,” he said. Once they trust the brand, the need for COD diminishes. Experts at a discussion added that initially brands can give the option of COD, and then must navigate delicate balance —after building trust and gradually nudging users toward online payment methods like UPI and credit cards.