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E-Commerce and Quick Commerce in India

Cash on Delivery, Trust and Payments

Many Indian shoppers were reluctant to pay online at first, so cash on delivery built trust, though digital payments now dominate more orders.

Payment habits shaped e-commerce.

Why COD

Buyers feared fraud and wanted to inspect goods before paying.

Costs

COD orders have higher return rates and handling costs.

Shift

UPI and cards have taken a rising share, especially in cities.

Trust builders

Easy returns, ratings and reliable delivery made online buying safer.

A COD refusal

A customer refuses a package at the door, and the seller pays return shipping.

Ignoring payment preferences

They affect costs and adoption.

Key takeaways
  • COD built early trust.
  • It is costly for sellers.
  • UPI is rising.
  • Easy returns build confidence.
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