Several months ago, when Prabhu Kumar could not find a book he wanted in bookstores here, he found it online at Amazon.com for $10. But he had to pay more than $9 in fees to have Amazon ship it to him.
Kumar, a software programmer, said he would not be doing that again. He now shops on India's answer to Amazon - FlipKart.com - which delivers books, phones and other items in as little as 24 hours at no extra cost. Kumar doesn't have to pay FlipKart a single rupee until a courier bearing his books arrives at his door. He can then hand over cash or a credit card.
"I think it perfectly fits the Indian mentality," Kumar.
While dozens of electronic commerce firms have recently sprung up to capitalize on India's growing Internet use, they have a problem. Indians are not yet comfortable with shopping on the Web. Many of them remain unwilling to use credit cards online. So the Indian retailers have gone to great lengths to gain customers. Customers may pay in cash on delivery, and the company fields delivery squads to ensure shipments get to customers quickly.
Full report here Economic Times