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Cash On Delivery For E-commerce in Kenya

When a customer wants to pay for a product once its delivered, its called Cash On Delivery. This is a payment method in E-commerce that has highly developed against all the pre-payment methods fueled by Online payment transactions.

Benefits of Cash On Delivery Payment Method

This payment methodology aids both the customer and the e-commerce brands. It helps online brands to reach a bigger population and at the same time assuring the customer that their money is not at risk in case the order is not delivered or its delayed. Here are some of main benefits of the Cash On Delivery (COD) payments;

  • Flexible payments

Just as the name suggests, the customer will only pay once the product reaches their doorstep. This enables users without knowledge or access to digital payment platforms to make payments for their orders with ease.

  • Countrywide Coverage

Online payments methods are not available to everyone. this opens upon up business to a wider market base as every user can make payment for their order. Cash On delivery opens up the market for a brand to everyone interested in ordering.

  • Safe Payment method

I am sure you have heard of online scammers and frauds. There are websites that scam people of their money by selling non existing products. A customer will make an order and make payment and that’s the end, no product received or they get substandard products or none at all.

Once the customer selects the cash on delivery payment method, it guarantees safety that they will only pay for what they ordered.

However, cash on delivery comes with a few disadvantages to both the seller and the customer.

Disadvantages Of Cash On Delivery

The Cash On Delivery payment procedure is risky for the seller when the customer rejects the order on delivery. Others demand for an exchange upon delivery. This cost is obviously incurred by the seller. The seller has to pay for returning the rejected order, return logistics and once more sending a new product that fits the customers needs.

This payment plan also exposes the seller to fraud. The seller has no authenticity of the information shared by the customer including the address or the real information about the customer. This leads to losses i case the customer is a fraud or unserious about the order.

To the customer, the Cash On Delivery method comes with extra charges as the seller is taking all the risks.

My Final Words -The seller needs to try and collect the correct and credible information about the customer including their address and full details to minimize bounced orders and further losses involved.

Wakah E-commerce Fulfillment and Cash on delivery services will be a great choice when looking for a partner to get your orders to the last mile. We have some years of experience handling COD and we have learnt some important insights in this business system. We share useful insights learned with the seller to reduce operation costs and losses associated with this payment method.

You can get a free quote for countrywide last mile delivery from us now.

Published by
Admin Wakah

Wakah Logistics is Kenya's Premier Courier, Order Fulfillment, E commerce Logistics and solutions provider. Based in Nairobi and offering solutions countrywide. Main Services include 1. E-commerce & Order Fulfillment 2.Errands and Messenger Services 3. Courier & Delivery Services Committed and dedicated to offering logistics solutions.