Governments Investigate E-Commerce Platforms Over Extra Cash-on-Delivery Charges

Regulatory authorities in several countries, including India and parts of Southeast Asia, have begun investigating major e-commerce platforms for allegedly imposing unjustified “cash-on-delivery” (COD) surcharges on customers. India’s Department of Consumer Affairs (DoCA) has reportedly received several complaints claiming that certain marketplaces add 2–3 % extra on COD transactions compared to prepaid orders. Consumer advocates argue this practice violates fair-pricing and transparency guidelines under the Consumer Protection (e-Commerce) Rules 2020.

The platforms defend the fees as a recovery of handling costs linked to third-party cash collection. Delivery agencies charge extra to collect cash upon delivery. The reason they charge more is that they need to have reliable people who can be trusted with the cash. Industry analysts say regulators are evaluating whether such charges constitute discriminatory pricing. The investigation follows a surge in COD usage among Tier-2 and Tier-3 city shoppers, who prefer physical payment. The DoCA is expected to issue an advisory by year-end 2025.

Mobile and social commerce remain the driving forces behind global and Indian e-retail growth, with mobile devices accounting for 71 % of retail website traffic in 2024, up from 68 % a year earlier, according to Salesforce Shopping Index data. Consumers increasingly browse, compare, and purchase directly through smartphones, fueled by faster 5G connectivity and intuitive app interfaces. Social-commerce integrations on platforms such as Instagram, TikTok, and YouTube Shopping have blurred the line between content and commerce.

In Southeast Asia and India, mobile transactions represent more than three-quarters of total e-commerce orders. Analysts predict that by 2026, mobile will generate over $6 trillion in annual online sales globally. Brands are responding by optimising mobile UX, integrating one-click payment gateways, and launching short-video campaigns designed for conversion.

Artificial Intelligence has become the cornerstone of e-commerce innovation in 2025, reshaping how businesses personalise customer experiences, manage logistics, and provide support. According to McKinsey & Company, AI-driven recommendation engines can boost sales conversion rates by up to 35%. Retailers are deploying generative AI tools for content creation, chatbots for 24×7 customer service, and predictive analytics for inventory optimisation.

UI using AI is another area personalised UI. Amazon, Flipkart, and Shopify have integrated AI models that dynamically price products and forecast delivery times. AI logistics systems are cutting costs by optimising last-mile delivery routes. Meanwhile, ethical AI use and data privacy compliance have become board-level priorities. Industry observers believe that AI adoption will set high-growth e-commerce brands apart from stagnant competitors over the next three years.

Elon Musk’s satellite-internet company Starlink is preparing to roll out its services in India starting with Maharashtra, pending final government clearance. The company, a division of SpaceX, has reportedly obtained conditional approval for operating licenses and is setting up local ground stations, according to India’s Department of Telecommunications (DoT).

Starlink plans to offer high-speed broadband to remote and underserved regions using its low-Earth-orbit satellite constellation. Industry observers expect initial pilot operations by early 2026, subject to spectrum allocation. The launch could disrupt India’s rural broadband market, complementing BharatNet’s national fiber initiative. Musk confirmed via X (formerly Twitter) that India is a “priority expansion zone” for Starlink’s global strategy.

Apple has achieved a record 30 % value share of India’s smartphone market in Q3 2025, marking its strongest quarter in the country to date. Research firm Counterpoint Technology Market Research attributes the surge to high sales of the iPhone 15 series and the “Make in India” production expansion that lowered import costs.

Apple’s revenue share rose even though its unit volume share remains below 10 %. Premiumization of the Indian smartphone segment and aggressive financing schemes have fueled growth. Apple’s retail stores in Mumbai and Delhi, opened in 2023, have also boosted brand visibility. India is now among Apple’s top five global markets by revenue.

India’s Fast-Moving Consumer Goods (FMCG) sector is witnessing remarkable growth, according to a recent Rubix report, which estimates the industry’s value at USD 236 billion in 2024, projected to reach USD 778 billion by 2030. The report highlights the sector’s expanding global footprint, with major companies like Dabur, Emami, Marico, and Tata Consumer Products reporting export shares between 20% and 35% in FY2025, driven by rising international demand.

Exports of beverages and packaged foods have surged, growing at 16% and 13% CAGR, respectively, between FY2022 and FY2025. Leadership talent from India is also gaining recognition, with figures like Priya Nair (HUL) and Shailesh Jejurikar (P&G) exemplifying this global ascent. Interestingly, the rural FMCG segment, despite contributing only 35% of total revenue, recorded 8.4% YoY growth in March 2025 — four times urban growth. Meanwhile, regional, D2C, and digital-first brands are reshaping competition across the industry.