LightInTheBox, the global online retail company, announced Wednesday (May 16) that it has launched cash on delivery in India.
In a press release, the India-based company said that the new service – combined with its PayTM and PayU Wallet, Unified Payments Interface, and localized Indian debit and credit card payment services – is aiming to be the "best" localized shopping service for Indian customers. Citing Statista.com, the company said that 65 to 70 percent of eCommerce transactions in India use the cash on delivery payment method.
"We are excited to enable the most popular online payment service, cash on delivery, in India. It marks our steady steps in exploring business opportunities in the fastest growing emerging economy in the world," said Alan Guo, chairman and chief executive of LightInTheBox, in the press release.
The announcement comes as the eCommerce market is heating up in India now that Walmart has acquired a majority stake in Flipkart, one of India's leading eCommerce players, for $16 billion. Amazon had been eyeing a deal with the local online retailer, but was trumped by Walmart.
Amazon has already committed to investing $5 billion in India, which – as the home to more than one billion consumers – is viewed as the next bastion of growth for eCommerce. Amazon has already brought its Prime video and music services to India, as well as its annual Prime Day blockbuster sale, as it has worked to challenge Flipkart.
Flipkart will need its newfound massive war chest – and a powerful partner like Walmart – to fend off Amazon’s entrance into the world’s second largest country by population, representing an eCommerce opportunity that Morgan Stanley estimates will be worth $200 billion by 2026. Recently, Euromonitor reported that online sales in India are currently growing about 35 percent a year, fueled by a rising middle class, demonetization and an increasing push toward urbanization.