Cash On Delivery (COD) payment method for Online Stores in India

Cash On Delivery a preferred Payment Method on Your Online Store in India

COD Cash On Delivery a preferred Payment Method on Your MoreCustomersApp Online Store in India

If you are running an online store in India, you will have to add COD as a preferred payment method. Manual payments are more comfortable for customers rather than online payments. This guide will cover all the things you should know about Cash on Delivery as a manual payment method in India.

What is Online Shopping?

This goes without saying. Whenever someone buys a product online, it’s called online shopping. People can easily browse through various products and buy their favorite ones online.

What is Cash On Delivery?

The next thing that you should know about is COD. COD stands for Cash on Delivery. It’s a manual payment option for shoppers. People can buy the product online and then they have an option to pay manually when it arrives at their home. It’s a more preferable option for people in India.

What is Digital Payment and Why it Fails in India?

Digital payments are when the person pays via online means of transfer such as debit/credit card, net banking, UPI, etc. Digital payments are increasing in India but there are a majority of people who prefer COD or manual payments. Lack of debit cards and knowledge is the main reason why people prefer offline payments. Trust is also an issue for some people.

In recent times, digital payments are also increasing a lot. You can offer both types of payment methods on your website. Some prefer manual payment methods whereas online payments are suitable for some people.


Advantages of Having Cash On Delivery (COD) in the Online Store

It’s always great to have COD in an online store especially if you are new and running it in India.

  • No more Trust issues. As people are not paying upfront, they are more likely to trust you.
  • The majority of people are comfortable transacting through Manual Payment methods like Cash, Bank transfer, etc.
  • It will increase the orders.
  • Cash is the most suitable option for middle-class people.

You can still also offer online payments after they reach the location. A person can pay via UPI when the delivery person arrives with their order. Recently, this type of method is applied by many businesses. You can offer the option to do so.


Checks before offering COD to your customers

Here are some of the questions you need to ask before you offer manual payment methods for your customers.

  • Can your company handle so much cash?
  • Can your delivery partner collect the cash for you on delivery?
  • Is it viable for your business to maintain proper cashflow? COD or any other manual payment methods will delay the cash in your hand.
  • Can you handle the expenses of the delivery in case the customer refused to take the parcel?
  • Most importantly, does your website and mobile app has that feature?
  • If you are offering online payments after delivery, does your delivery man carry the swiping machine with them?
  • How much time it will take for the payments to reach you?



If you are not offering Cash on Delivery (COD) in India, you are losing a lot of your customers. Adding another payment method as one of the options will increase sales. A small hack can be a reason for the exponential growth of your business. You can surely add it and see it for yourself. Make sure you have checked the list before adding COD.

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