E-Commerce Retailers May Revoke The COD Option Soon, Know Why?


The e-commerce store is implementing new tactics to gain customers day by day. Also, after being in-game for a long time, now they are also identifying fraudulent customers and penalizing them in their own unique way.

The  Cash On Delivery option which is available on the retailer’s site for those users who have a hard time trusting the e-commerce shop is soon going to be blocked for a certain user group. There are literally millions who are using the e-commerce platform for shopping and it’s also true that there are customers who misuse the services provided by the retailers.

delivery man smiling holding cardboard box 1150 8869

The COD option is decided to be removed for a certain audience who seems to be exploiting the option. The general public opinion about Cash On Delivery option is that they can treat the retailer whichever way they want as they are yet to release the payment. Ergo, missed deliveries, non-acceptance of product and other problems like not picking up calls from a delivery person so as to get the delivery canceled, happens a lot.

Retailers such as Amazon, Flipkart, and others lose a sum of money ranging from 50 to 150 INR over every item that is undelivered due to problems from the customer’s side. The companies may seem to lose a very small amount but when calculated on a nationwide scale over a large period of time, the amount of loss seems quite significant.


To deal with the problem, retailers are in favor of developing an algorithm or software that can detect faulty patters by customers. Post identification of such costumers, their privileges can be revoked for using the COD option.

E-commerce companies have not yet implemented any such method due to the fact that they do not want to punish their innocent user base which will also cause them to lose market share if they target the wrong group of customers.

Flipkart Pay Later

There have been such experiments tested by e-commerce giants such as Paytm and Flipkart, where they both announced a PayLater system. Although the system was a very nice opportunity to gather a huge group of new users, the plan mostly backfired and they are still in the process to recover their money due to fraudulent customers using up the scheme and refusing to pay.

So experimenting and fraudulent customers are nothing new for the Indian market but all they need to care for is that they should come up with a viable plan which must-have insights for every scenario.

Related articles

Flipkart Big Saving Days Sale is Back,Best Deals on iPhone XR, Poco X3, And Much More

Get ready to do hefty online shopping because the Flipkart Big Saving Days Sale is back and probably...

Amazon Great Indian Festival Sale: 10 Tips to Get the Best Deals

Amazon is back with its festival sale, and the magnitude of the sale is getting bigger and grander...

Maruti Suzuki Records Quarterly Loss Of 249.9 Crores

India's largest car manufacturer, Maruti Suzuki has announced a standalone loss of Rs 249.9 crore for the April-June...

Amazon Prime Movies: What’s New Coming To The Platform This July 2021?

Amazon Prime Video is updating its database by a ton and you will have to choose from among...

How to Rank your product in Flipkart & Amazon to increase your sales

To boost your sales on an e-commerce platform what you need the most is to rank your product...

Amazon launched new app for iPhone users in India

Amazon which is a giant in the eCommerce industry has unveiled a new app for iPhone users in...

Flipkart Big Billion Days 2021: Big Discounts on Smart TV Models by Blaupunkt, Infinix, and Thomson

Get ready to get the best deals from the Flipkart Big Billion Days Sale 2021. The sale is...

Amazon Prime Day Sale 2020 Starts From 6th August

U.S e-commerce giant Amazon has finally announced the Annual Prime Day Sale 2020. The sale will be starting...