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Despite digital boom, COD reigns supreme for D2C brands: Report

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Despite digital boom, COD reigns supreme for D2C brands: Report

According to a report by Shopflo, cash still remains the preferred method of payment for online shoppers in India, with about 40% of ecommerce orders being processed via UPI. Cash-on-delivery (COD) orders decreased slightly but still accounted for 45.6% of orders. However, the report doesn't consider COD orders that are paid through UPI QR codes at the last mile. While COD orders have disadvantages such as fraud concerns and higher shipping costs, it allows consumers to take risks with new brands and can lead to increased conversion rates. Tier II towns have a higher average order value compared to metropolitan cities. During the festive season, average order values varied across different product categories.

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