Cash on delivery soars as social media commerce hits the brakes

The newest and most popular mode of shopping is not just a fad. It is increasingly gaining momentum with internet users across India. Quick commerce websites and apps are making the most of this, and are in a desirable space financially. In a recent report by Internet and Mobile Association of India (IAMAI), in an event held in New Delhi called ‘Digital India Summit’, revealed several aspects of internet usage in India.

Online shopping through social media apps is witnessing a slowdown, with nearly 1 in 5 online shoppers engaging in it in 2024.

In 2024, the total number of internet users was 886 million. Out of this, those using Net Commerce (Product + Service E-commerce) was a staggering 480 million. Produce e commerce was on demand with 332 million users. However, what remains surprising is that social media e-commerce took a hit last year. only 55 million users opted for buying good via social media.

The report further states that in 2024, around 12% of internet users entered the transactors' universe through online shopping. These users engage in online shopping with 'Cash on Delivery' as their payment method but do not participate in other online transactional activities.

The report has stated that internet users are spending on an average 90 mins daily on accessing internet. Urban users are spending relatively higher time as compared to rural. Rural has more internet users as compared to urban. This number in terms of growth was at 821 million users in 2023, and rose steadily to 886 million users. However, the expected number of users is expected cross 900 million in 2025.

Read: India to cross 900 million internet users by 2025, increased use from rural areas: Report