Amazon joins forces with India Post to test the cash-on-delivery payment mode

Amazon, one of the major ecommerce websites across the globe, recently came to India and it already has plans to give tough competition to its counterparts and rivals in the country. We have heard that the retailer has already entered into collaboration with India Post to test its cash-on delivery model across the country.

As The Economic Times reports, Amazon and the government entity in India were already working together as the company makes use of the service to deliver packages. But the e-retailer now wants postmen to even collect cash for efficient working of the cash-on-delivery model. Sources close to it have revealed that a pilot has already been kicked off in the nation to test the system.

Amazon India Logo

But what’s the reason behind choosing India Post for the task? Well, one of the main motives seems to be Amazon’s wish to reach out to customers in every nook and corner of India. And it is a known fact that India Post has a reach greater than any other courier company in the country. The service has as many as 150,000 post offices, 89 percent of which are situated in rural areas.

Cash-on-delivery is definitely not a new concept in India and most people who shop online rely on this method of payment. But none of the homegrown websites have thought about partnering with postal services as yet. If the aforementioned website is to be believed, about two thirds of the ecommerce transactions have cash-on-delivery as the preferred option and this is mostly seen in small towns.

As we said, Amazon and India Post are currently testing the said model and we are yet to receive a confirmation regarding this mode of payment.