Purchase/Payment policy
Cash on delivery is a mode of payment where a customer makes the payment after the goods/services are received. The customer pays cash or makes the payment via debit/credit card directly to the delivery person.
Why we use Cash on Delivery?
Even if our world is growing technologically, payment options such as credit/debit cards, net banking, and e-wallets contribute to only 30% of online purchases. Some of the reasons why cash is still ruling are:
- eCommerce sites are blossoming every day. Since customers don’t know the legitimacy of such online stores, they fear they will be scammed.
- Since time immemorial, customers have been making cash payments, and they are familiar with cash payments.
- Cash payment provides ease of transaction. One simply needs to hand over the amount for the product or service received and be done with it.
- There is lingering post-purchase order stress. For example, refund duration, refund not received, refund not allowed by some merchants, etc.
- In tier 2 and 3 cities, customers are particularly wary about online transactions. Cash payment sets them free from making cards/online payments.
- Some customers choose cash on delivery because they want to be sure about the product received. They like to check the product in front of the delivery person and then decide whether to accept it or not. Cash on delivery allows them to not worry about receiving a wrong/damaged product and ask for a refund.
To sum up, COD (cash on delivery) provides assurance and confidence to customers to shop online freely. It encourages customers from the nook and corner of this country to shop online and not worry about limited payment methods.
Pros of Offering Cash on Delivery
Cash is the king, and rightly so. Cash is a preferred payment method for most shoppers in algeria, and eCommerce businesses should think of providing COD to operate a successful online business.
Gain Customers Trust
Even though we are becoming digitally advanced, there is no end to online scams. COD as a payment method allows customers to trust a brand better. They know they won’t pay for a product unless and until they receive it.
Reach More Customers
COD payment method allows customers to buy products quickly. It encourages customers to do impulse shopping since they know they don’t need to prepay, meaning there’s no need to fill in payment details (additional steps to take care of). This leads to faster checkout and more impulse shopping.
Cons of Offering Cash on Delivery
Although COD is convenient for shoppers since they get to experience the joy of ordering something online without paying for it, this payment method is inconvenient for eCommerce businesses.