Critical factors influencing online consumer preference towards cash on delivery method in Sri Lanka

Main Article Content

Article Sidebar

Published Feb 4, 2021
Navodika Karunarathna


With the rapid technological advancements, E-commerce deliveries in Sri Lanka have been flourishing tremendously. However, payments have still been identified as one of the main obstacles to the developments of the E-commerce sector. The Cash on Delivery (COD) method has played a significant role in driving the growth of the E-commerce industry and accounts for more than 60% of all E-commerce transactions in Sri Lanka. Although COD is so important, many companies still waver with its processes as it has become a notoriously problematic area in terms of on-time and successful deliveries. Hence, the purpose of this study was to investigate the critical factors influencing online customers' preference of cash on the delivery method to provide insights into the management of E-commerce and logistics industries on the usage of appropriate payment methods for E-commerce transactions. This empirical study is based on the primary data obtained through a survey conducted among Sri Lankan online customers. The data were analyzed using the Partial Least Squares–Structural Equation Modelling technique. Consequently, 'Sri Lankan origin of the online seller,' 'Selling specialized products by the online seller,' 'Availability of wide choice of payment methods,' 'Offering a wide assortment of foreign products by the online seller,' 'Lack of trust on online payments' has been identified as the critical factors influencing Sri Lankan online customers' preference of cash on delivery method.

How to Cite

Karunarathna, N. (2021). Critical factors influencing online consumer preference towards cash on delivery method in Sri Lanka . Journal of Research in Emerging Markets, 3(1), 66–80.
Abstract 82 | PDF Downloads 46

Article Details


E-commerce, Cash on Delivery, Online Shopping, E-retailers



Ambekar, A. (2011). The 'Cash on Delivery' Payment Option.

Arora, P., Srivastava, S., & Majumder, S. (2017). Using Automation Technology and IoT Based Data Capturing to Ensure High-Quality Last Mile Logistics. Proceedings of the 3rd World Conference on Supply Chain Management, 49-56.

Bhalla, P. (2019, May 02). Cash on Delivery (CoD) Pros and Cons in eCommerce. Retrieved from Shiprocket: (2020). Cash on Delivery in Sri Lanka: Faster Payments Reliable Service. Retrieved from (2020). Retrieved from Cash-On-Delivery-courier-service-for-ecommerce-businesses:

DeliveryMalli. (2017). Delivery services for ecommerce. Retrieved from Deliverymalli:

Dias, M., & Ranwala, L. (2015). Determinants of Consumer Satisfaction on E-Procurement/ Online Purchasing in Sri Lanka. Proceedings of 8th International Research Conference, KDU. 119-125.

Dudharejia, M. (2018). Cash on Delivery Dominates Indian Ecommerce. Retrieved from Practical E-commerce:

ETNowDigital. (2019). One-third of cash on delivery orders from e-commerce websites not delivered. Retrieved from

Fallouh, F. (2019). The future of cash on delivery in the MENA region. Retrieved from Logistics Middle East:

Fernando, N. (2019, May 23). Internet users reluctant to use e-commerce despite high awareness: survey. Retrieved from Daily Mirror:

Howson, A. (2017, March 13). Takas and the difficulties of E-commerce. Retrieved from Roar Media:

Jana, S. K. (2017). Measure of E-cash on delivery payment convenience option in the context of demonetization and its effect on customer loyalty. Ushus-Journal of Business Management, 10.

JetEx. (2018). Cash-On-Delivery. Retrieved from jetex:

Karunarathna, N. (2020). Identifying the ways of delivery performance enhancements in Sri Lankan E commerce Logistics sector with special reference to the Cash on Delivery (COD) method: An Integrative Review. International Journal of Multidisciplinary Sciences and Advanced Technology, 104-119.

Kumar, A., Singh, R. K., & Modgil, S. (2020). Influence of data-driven supply chain quality management on organizational performance: evidence from retail industry. The TQM Journal, 27.

Kumar, R. (2015, 7). Role of Logistics in eCommerce. Retrieved from iamWire:

LogiNext. (2017). LogiNext. Retrieved from LogiNextSolutions:

Pencarelli, T., Skerhakova, V., Taha, V. A., & Valentiny, T. (2018). Factors determining Italian online shoppers' preference of cash on delivery: Empirical analysis. Polish Journal of Management Studies, 15.

Polasik, M., & Fiszeder, P. (2010). Factors determining the acceptance of payment methods by online shops in Poland. Electronic Journal, 39.

Puneet Bhalla. (2019,). How does Cash on Delivery (COD) work? Retrieved from Shiprocket:

SmartPLS-GmbH. (2020, 11 28). Model Fit. Retrieved from SmartPLS:

Snyder, H. (2019). Literature review as a research methodology: An overview and guidelines. Journal of Business Research, 333-339.

WorldEconomicForum. (2018). Delivering the Goods: E-commerce Logistics Transformation. Cologny/Geneva, Switzerland: World Economic Forum.