The 'How to Win in India' Playbook

Cash on delivery (COD) still accounts for a significant portion of e-commerce transactions in India, with some estimates as high as 60%, because it builds confidence for first-time online shoppers and those wary of digital fraud. This payment method is crucial for reaching customers in rural and semi-urban areas where digital payment adoption is lower and trust in online transactions is still developing. For sellers, offering COD can expand their customer base to include those without access to or comfort with digital payments. The vast majority of India's internet users, between 70-75%, prefer to use Indian languages online, yet only about 0.1% of website content is in these languages. This gap highlights a massive opportunity, as platforms like Flipkart have seen 50% of sales during major events come from Tier III cities and rural India, driven by localization. Recognizing this, major players like Amazon are expanding their language support to include several Indian languages to connect with the next 100 million consumers. Digital platforms are increasingly empowering micro-entrepreneurs by providing access to larger markets and digital payment systems like UPI. However, a significant digital divide remains, with many small businesses still facing barriers to platform adoption. Government initiatives like the Open Network for Digital Commerce (ONDC) aim to level the playing field by creating a decentralized network that enhances the visibility of small sellers without them needing to be on major platforms. The ONDC is designed to democratize e-commerce by allowing sellers to be discoverable across multiple platforms, giving them more control over their business operations and access to a wider customer base. This government-backed initiative helps small and medium-sized enterprises (SMEs) from Tier 2 and Tier 3 cities expand their reach without significant additional costs. As of December 2025, over 116,000 retail sellers from more than 630 cities and towns were live on the ONDC network. Despite the growth of digital payments, a trust deficit persists, with 77% of Indian consumers expressing significant concern about potential data breaches when shopping online. Inaccurate and inconsistent product data also contributes to this, leading to an estimated ₹5,000 crore in annual revenue losses for the Indian e-commerce sector. This underscores the importance of not just technology, but also data accuracy and transparent customer service in building long-term consumer confidence. There is a clear trend towards greater trust in online transactions, with prepaid orders accounting for 41% of all orders in 2025, a notable increase from 32% the previous year. This growth is particularly strong in Tier 2 cities, and even in Tier 3 markets, the share of prepaid orders has risen to nearly 34.5%. This shift indicates a maturing e-commerce market where reliability and predictability are becoming as important as payment options. While AI is seen as a promising tool to bridge the trust gap, with nearly 70% of shoppers wanting to use it to verify product authenticity, significant concerns about data privacy remain. Interestingly, a strong preference for human interaction persists, with 78% of consumers favoring online platforms that offer human customer service support. This highlights the need for a balanced approach that leverages technology while maintaining a human touch. Government programs are actively working to upskill entrepreneurs, with initiatives like the Women Entrepreneurship Platform (WEP) by NITI Aayog providing resources and mentorship. Furthermore, the integration of platforms like the Government e-Marketplace (GeM) with ONDC allows small sellers to directly access government procurement opportunities, further expanding their business potential.