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How Flipkart Revolutionized Indian E-commerce: The COD Innovation

How Flipkart Revolutionized Indian E-commerce: The COD Innovation


On the 16th of October in 2007, the words “we are live” marked the inception of a behemoth in the world of e-commerce – Flipkart. Founded by the dynamic duo, Sachin and Binny Bansal, this company started as a humble endeavor and has grown into a giant with staggering statistics: a revenue of Rs 50,992 Crores in FY22, a seller base of approximately 1.4 million, and a user base of around 300 million, combining both Flipkart and Myntra. But what’s truly fascinating about Flipkart’s journey is the untold story of its early days when it all began as a comparison shopping engine called CompareDuniya.

The Genesis of CompareDuniya

Sachin and Binny Bansal started their entrepreneurial journey with CompareDuniya, a website designed to help users compare prices of various products across different online retailers. The goal was simple: assist online shoppers in finding the best deals and saving money. However, CompareDuniya didn’t gain the traction they expected. This initial phase of their journey illustrates an important lesson in entrepreneurship – adaptability. They recognized a gap in the Indian e-commerce market, which led to a pivotal decision.

The Pivotal Shift to E-commerce

The Bansals pivoted their business model, shifting from a price comparison site to an e-commerce platform. The inception of Flipkart was marked by the online sale of books, and with a mere $6,000 in personal savings, they embarked on this ambitious venture. Notably, the first book ordered on their platform was ‘Leaving Microsoft to Change the World’ by John Wood.

This wasn’t just a typical order, though. The founders went the extra mile to ensure customer satisfaction. Sachin Bansal personally took care of the packaging, while Binny Bansal became a delivery boy to ensure the order reached the customer’s doorstep. This level of commitment and personal touch set the foundation for Flipkart’s extraordinary journey.

The Game-Changer: Cash-On-Delivery (COD)

While Flipkart’s evolution from a comparison site to an e-commerce giant is a remarkable story in itself, one of the most significant innovations that shaped the Indian e-commerce landscape was the introduction of the Cash-On-Delivery (COD) payment option in 2010.

  1. Market Entry: A Financially Inclusive Approach

Before COD, online shopping was predominantly limited to the 0.5% of the Indian population that possessed credit cards. This was a significant barrier to the growth of e-commerce. Flipkart’s introduction of COD effectively democratized online shopping, opening the doors to a much larger segment of the population that didn’t have access to digital payment methods. By allowing customers to pay in cash upon delivery, Flipkart eliminated the need for credit cards, making online shopping accessible to a broader audience.

  1. Building Consumer Trust and Adoption

Trust is a fundamental component of e-commerce, especially in a market where consumers were initially skeptical about making online payments. COD played a pivotal role in developing trust among consumers. It allowed them to pay for their purchases in cash only after the products were safely delivered to their doorstep. This sense of security was crucial in overcoming the initial apprehensions people had about online transactions. Flipkart’s embrace of COD not only inspired trust but also instilled a sense of security and reliability in the minds of Indian consumers.

  1. Sales Volume and Competitive Advantage

Over time, COD became the preferred payment method for online shopping in India. Over 60% of online purchases were made through COD, showcasing a substantial shift in consumer behavior towards online shopping. Flipkart’s early adoption of COD gave the company a significant competitive edge. It set the stage for Flipkart to become a market leader, as other e-commerce platforms followed suit in offering COD as a payment option. This competitive advantage paved the way for Flipkart to dominate the Indian e-commerce scene and become a household name.


In the span of 16 years, Flipkart transformed from a small price comparison site into a giant of the Indian e-commerce industry. Its journey, marked by adaptability and innovation, has not only reshaped the way Indians shop online but has also redefined the e-commerce landscape in the country. The introduction of Cash-On-Delivery, with its profound impact on market entry, consumer trust, and competitive advantage, was a game-changer for Flipkart and the entire e-commerce industry. This innovation continues to inspire the future of e-commerce in India, reflecting the remarkable entrepreneurial spirit of Sachin and Binny Bansal.


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