Cash on Delivery:Issues and Challenges

The biggest reason for the success of Indian ecommerce is the confidence built by cash on delivery. Relying on cash on delivery, Indian customers have been encouraged to make a shift from traditional shopping to electronic shopping. In 2010, to reach out more and more customers, Flipkart launched cash on delivery model in India. Today, Indian ecommerce is highly dependent on cash on delivery payment option. The most preferred mode of payment is an evil for electronic retailers as cost of cash on delivery is borne by sellers. Purpose of this study is to explore major issues and challenges regarding cash on delivery. The paper first focuses on the issues which make cash on delivery unsustainable proposition for sellers and then aimed at exploring major challenges in changing customer's spoilt habit of cash on delivery choice.