Rural customers are gradually increasing in the e-commerce market. And, with the rise in customers, their share in cash on delivery is rising too.
Surprisingly, according to data, as many as 90% of customers from rural areas prefer cash on delivery.
Tier-2 and Metro preferences
Customers from tier-2 cities are also not far behind as 70% of them chose cash on delivery and with 50% from the metro choosing the same, shows the Government’s push for digitalization has not been that successful.
Government’s push for less-cash society
In November 2016 Government withdrew 500 and 1000 Rs notes and pushed for digitalization. But, according to RBI data, currency with the public rose 8.5% year on year basis. Cash with the public increased after the announcement of lockdown.
Why do they choose cash on delivery?
Another reason for rural customers choosing cash on delivery is that they get to see the product before paying which points to the fact that e-commerce platforms need to bridge the gap in terms of the trust.