COD (Cash on Delivery)

COD (Cash on Delivery) remains the dominant payment method in the Indian e-commerce market, representing 60% to 80% of all online retail orders. While UPI and net-banking have grown rapidly, COD is heavily relied on by consumers due to a lingering lack of trust in new online brands, concern over digital payment failures, and the convenience of inspecting physical packages before paying. For a D2C print-on-demand brand, supporting COD is essential for maximizing customer conversion and expanding customer reach, especially in Tier-2 and Tier-3 cities. However, COD introduces unique financial and operational friction: shipping aggregators charge additional cash collection fees (usually ₹30 to ₹50 or 2% of order value), the remittance cycle of collected cash back to the merchant's bank account typically takes 7 to 10 days, and COD orders have significantly higher RTO (Return to Origin) rates than prepaid orders, requiring higher working capital reserves.