Amazon, Filpkart E-Commerce under investgation for charging extra on COD orders in India

As online shopping becomes a daily routine for millions of Indians, the central government has turned its attention to how major e-commerce platforms like Amazon, Flipkart, and FirstCry handle Cash on Delivery (COD) transactions.

The Ministry of Consumer Affairs has initiated a detailed investigation following multiple complaints from consumers alleging unfair practices — including extra charges on COD orders and delays in refunds for cancelled prepaid purchases.

Consumer Complaints Trigger Action

According to officials, several users reported that platforms are adding small fees to COD orders, seemingly to push customers toward prepaid payments. The ministry is now collecting inputs from online retailers, industry associations, and consumer rights groups to ensure fair play and transparency.

“Many shoppers say they switched to prepaid only to avoid extra COD fees,” a ministry source revealed, suggesting that such tactics may go against basic consumer protection principles.

Currently, Amazon charges ₹7–₹10 per COD order, while Flipkart and FirstCry levy around ₹10. Though minor per transaction, these fees can add up for frequent buyers and low-income customers.

E-Commerce Platforms Defend COD Fees

Industry insiders argue that these charges are not unfair but necessary.
A senior e-commerce representative said, “Small COD fees help curb impulse purchases and cancellations, which cause operational and logistical challenges.”

However, consumer advocacy groups disagree, claiming that such charges — coupled with refund delays — make online shopping stressful and unreliable for customers.

Refund Delays Under Scanner

Beyond COD charges, the ministry is also examining complaints regarding slow refunds after prepaid order cancellations. Customers allege that refunds often take several days, leaving their money blocked.

Officials have urged users facing such issues to register grievances on the National Consumer Helpline, ensuring their cases are officially tracked and resolved.

Cash Still Rules for Indian Shoppers

Despite the rise of digital payments, Cash on Delivery remains India’s most trusted payment method.
A 2024 IIM Ahmedabad study involving 35,000 consumers found that 65% chose COD for their most recent online purchase, particularly in fashion and household categories. The trend is stronger among families earning below ₹3.6 lakh annually and in semi-urban and rural regions.

E-Commerce Boom Calls for Stronger Oversight

India’s e-commerce market, valued at $160 billion in 2025, is projected to reach $345 billion by 2030, making it one of the world’s fastest-growing online retail hubs.

With millions of new users joining from smaller towns, the government aims to ensure transparent and consumer-friendly practices. The current investigation reflects an increasing emphasis on accountability and consumer rights within the booming e-commerce sector.