Ecommerce, News

India Post Collected Over INR 280 Cr via Cash on Delivery for Flipkart, Amazon and Snapdeal

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Within an year of joining the e-commerce sector, India Post has transacted business worth INR 280 crores in the Cash on Delivery (CoD) segment for e-commerce firms like Flipkart, Snapdeal and Amazon, as shared in a release by PTI.

“India Post collected over Rs 280 crore from consumers and gave it to e-commerce firms, since CoD facility was started in December 2013. The department with its huge network can serve as the best agency for not just delivering products, but also collecting money,” a government official said.

While the revenue generated by India Post is not known, the government officials said that India Post is very keen on developing its e-commerce related services as a major revenue model to move ahead. Clearly enough, with the volumes of orders this Government organisation is handling, it would be cashing in a lot of revenue from the e-commerce industry alone.

As for the e-commerce companies, India Post comes as a savior, since no logistics company as of now caters to as many postal codes as India Post, which has about 1.55 lakh post offices.

Communications and IT Minister Ravi Shankar Prasad has also said previously that India Post is best suited to offer delivery services to e-commerce players, given its wide reach across rural, urban and semi-urban areas.

CoD service is considered as the most convenient for the customers and around 50-75 percent of orders are placed with various online retailers with the CoD preference, as according to ET report. While the companies keep trying to promote prepaid orders by levying a CoD charge on the order value, consumers still have a preference of paying only when they have received the order.

It is also because online payment is yet to be introduced in many parts of the country, and credit card/debit card penetration is stil low.


India Post’s cash handling services like core banking solutions, money transfer and account systems can further help e-commerce firms in collecting cash from users in urban as well as rural areas, the official said.

Also read: India Post Signs an MoU with Snapdeal and Shopclues; Also to Launch INR 4909 Cr IT Project

India Post is gearing up with its infrastructure to be an active part of the distribution, delivery and logistics which is said to touch around INR 9 billion by 2021.


In a recent news, India Post has signed a Memorandum of Understanding with Indian E-commerce companies Snapdeal and Shopclues, to join hands and propel the e-commerce logistics. Thereby being one of the Government Body which is strongly supporting the online businesses in the country.

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