Under the agreement, Amazon will be able to reach rural areas of India. The Indian Postal Service has over 150,000 post offices scattered throughout India, with 89% of them in more rustic and rural areas. In addition to expanding their physical reach in India, Amazon is also piloting a new Cash-on-Delivery (COD) payment option with the Indian Post Office.
One of the main issues with giving support to less urban areas is a lack of payment options. Many people in the villages and Indian countryside do not have the option to pay with credit or debit cards and there are not many alternatives, as with Boleto Bancario in Brazil.
Cash on Delivery also has its own issues, with refusal of payment and the chance of the recipient not being available at the provided address.
In recent news, Amazon has teamed up with the Indian government in order to drive foreign investment norms in the e-commerce space.
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