Introduction
The last decade in India has seen a steady rise in e-commerce
(e-retail, e-travel and e-classifieds) due to significant increase
in the number of internet users, proliferation of internet-enabled
devices, rising disposable incomes, and growing acceptability of
online payments.1 Goods or services can be ordered
electronically but their payment does not necessarily have to be
conducted online. The cash-on-delivery system is one of the biggest
reasons for the growth of e-commerce in India. More than 50 per
cent of all online transactions in India are believed to be based
on the cash-on-delivery payment system.2
The remarkable growth of the e-commerce industry confirms that
Indians are increasingly willing to buy goods and services online,
and this has given a strong fillip to foreign investment. Foreign
venture capitalists and private equity firms have demonstrated
their faith in the Indian e-commerce industry and this is evident
from the momentous
