Canadian e-commerce enabler Shopify has notified all its ecommerce merchants in India that it will discontinue its advanced cash-on-delivery ( COD ) app by the end of the month, which could potentially impact over nearly 50,000 e-commerce and direct-to-consumer merchants in India, whose large portion of business comes through cash on delivery . The company has not given a reason for discontinuing the COD app in India, which is still largely a cash-driven market where several small and medium merchants rely on cash on delivery for their online orders. Shopify, which helps small and medium businesses build and sell online stores, has recommended a few alternative apps, including Indian e-commerce enabler GoKwik ’s Kwik COD app and COD King.
“The Indian eCommerce market is unique. It’s still primarily cash-driven. If we go deeper into the tier 3 tier 4 cities, COD becomes high, with a high risk of returns (RTO).
In some cases, brands cater to over 90% of COD orders, with 60% being RTOed. With Shopify’s ACOD app phasing out, brands can potentially incur RTO losses in just a few weeks if they don’t port to an alternative app,” said Said Chirag Taneja, co-founder and CEO, GoKwik whose Kwik COD is being recommended by Shopify currently as the alternative to ACOD app. Offering COD as a payment option is crucial for eCommerce businesses just beginning their journey in the Indian market.
Shoppers often face a significant challenge in trusting relatively new brands. Cash-on-.