Cash on Delivery (COD) is a popular payment method in India’s burgeoning e-commerce market, even though we’re seeing digital wallets and UPI transactions on the rise. For affiliates working in the space, understanding how India’s COD market works can make a big difference to your affiliate business and overall success.
In this article, we’ll explore the differences between the European COD e-commerce marketplace and India Cash On Delivery structure, highlighting new trends emerging in this market and explain why faster payments through India via COD is a game-changer for affiliates to be investing in early.
While Cash on Delivery as a payment mechanism is available in Europe, it doesn’t have the same cultural importance as it does in India. In Europe, digital payments have largely replaced COD for most customers and clients are more easily accessing bank accounts and debit and credit cards are widely available too.
As such many European consumers tend to trust online payment systems more and are often more familiar with various forms of buyer protection, which makes them less dependent on paying cash at the time of delivery.
India, however, is a different story.
In India, COD remains one of the most preferred payment methods, especially in tier 2 and 3 cities. This preference is due to a combination of factors such as lower trust in online payments, a large unbanked population who predominantly prefer to still purchase on a cash basis, and issues around access to digital payment methods.
For many Indian consumers, paying cash when a product arrives feels more secure.
For affiliates, this difference means a few things:
As Diwali approaches, the e-commerce market in India heats up. It’s the biggest shopping season of the year, and customers are looking for deals across all sectors, from fashion to electronics.
For affiliates, this presents a golden opportunity, but it also comes with some unique challenges in 2024.
One of the major trends we’re seeing this Diwali is a cap on big branded offers. While large brands are offering discounts, many of them have set strict budget limits for their offers.
This is due to a mix of inflation, increased production costs, and a more cautious approach to marketing spend. What does this mean for affiliates?
One of the biggest pain points for affiliates in the Indian market has traditionally been slow commission payouts. When promoting COD offers, the affiliate’s commission often gets delayed because the payment cycle only begins once the customer pays the courier. For years, this lag has been a downside to promoting COD.
Our CEO also detailed this on a recent podcast with Josh Sebo from OfferVault. You can listen to the full episode and the numbers that were shared here
However, 2024 has brought some improvements.
Many e-commerce platforms and advertisers have introduced faster payment solutions for COD transactions, which benefit both affiliates and advertisers.
For affiliates working in and outside of India, COD remains a key driver of e-commerce success in this locality. If you are expanding your affiliate business globally you should be looking at advertisers who can run their offers with COD payments. It offers higher conversion rates for your traffic and you could be tapping into a huge audience that still prefers cash over digital payments and is largely being ignored as a growing affiliate marketing trend. The Indian market, especially during festive periods like Diwali, offers a wealth of opportunities, but it’s essential to understand how COD functions differently from European markets.
By leveraging new trends, promoting emerging brands, and taking advantage of faster payment cycles, affiliates can maximize their earnings from India’s COD market this Diwali and beyond.
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