Sellers, Beware! Read These 4 Tips for Safe Cash on Delivery Transactions

Oct 29, 2021 | Article

There are so many options when it comes to e-commerce payment. From bank transfer to credit card to pay later to digital wallet, all of them are made available as payment options to make it easier for buyers to complete their transaction, and for sellers to receive their funds real-time. Despite all the simplicity digital payments have to offer, there are always customers who feel more comfortable with cash on delivery (COD) method.

According to a statistic released in 2020 by Indonesia’s Central Bureau of Statistics, 73% of 17,000 e-commerce businesses in the country still uses COD. This proves that in the country, it is still one of –if not the most favorable methods used in e-commerce.

The upside and downside of COD

It’s completely understandable, though. Normally people would love to make sure first that their orders are as described by the sellers before making payment. They want to know their items are in good condition.

Other reason why people choose COD is because not everyone is familar with banking and other popular digital payments. Especially among elderly, COD really helps when they want to make a purchase.

However, not every COD transaction ends well. Returns on delivery happen. Some people may not be satisfied with the products and don’t want to pay. Some don’t even show up or respond to the delivery. While it doesn’t happen very often, when it does it means a big disadvantage for the seller, who still has to pay for the time and labor loss.

So if you’re offering COD, you need to be really careful. Read these 4 tips to make your COD transaction a good experience for you and your customer.

1. Be clear about what you sell

Describe your products as clear as possible. Be honest when you do so. If your products may have certain effects, write them down. The point is, don’t just brag about the advantages of your products. Your customers should know too that the product may not be suitable for them. This way, you can avoid misunderstanding and minimize risk of return upon delivery.

2. Choose a comfortable spot for you to make a transaction

If you and your buyer happen to live in the same town or area, arrange a meeting in a spot that you both are comfortable with. That spot shouldn’t be too far from you or too far from your buyer.

For your own safety, you should also consider a spot with a crowd in it. It doesn’t necessairly have to be jam-packed – just make sure there are people around you in case something bad happens.

3. Show your return policies

Create return policies that are fair for you and your buyers. Be clear that they can’t return their orders if there’s nothing wrong with them. Ask them to make unboxing video that shows the exact condition of their orders upon delivery. As a seller, you should also accept return if the mistake is yours.

But don’t only create the policies. Show them for your customers to read and get them agree to the rules before they purchase anything from you.

4. Make your business available on marketplaces

A lot of marketplaces offer cash on delivery as one of their payment methods. This means if you make your products available on the marketplaces, you can offer COD to your buyers from different cities. Other benefits: you don’t have to calculate the delivery fees and you don’t have to do the delivery yourself!

Improve your customers’ online shopping experience

Not considering COD for your business? Don’t worry, because you can still improve your customer’s online shopping experience by responding to their orders immediately and accurately. But fulfilling orders can take too much time and effort.

Save your precious time and energy with 8Commerce, who will take over your warehousing and fulfillment problems. Interested in learning more about 8Commerce? Find out details about us here and get in touch with out team right now through this link

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