Shipping solution for ecommerce
Understanding Cash on Delivery Cash-on-delivery (also known as pay on delivery) has become a popular payment method for online shopping in India. Customers love the convenience of COD payments because they can see and touch the product prior to paying.
Cash on Delivery (COD) is a payment method in which the customer pays for the order when it arrives, rather than paying ahead of time. The product is returned to the seller if the buyer does not pay at the time the order is delivered.
People still prefer COD as a payment method for a number of reasons
- Lack of access to digital payment methods
- Online sellers lack trust
- Fear of low product quality
- What is the process?
The buyer places an order online and requests delivery to the specified address. Pay on Delivery is the payment option chosen by the customer.
A seller will prepare a bill that is attached to your parcel once you place an order.
The delivery boy collects the shipment at the supplier or seller and delivers it directly to the customer’s address. Customers can pay the delivery boy with cash or a credit card.
The logistics partner will then deposit the COD amount to their account. After deducting handling fees, the logistics company deposits the COD amount on the account of the supplier/seller.
What is the impact on you as a vendor?
Orders for cash on delivery are similar to prepaid orders, except that the payment method is different. Since the seller doesn’t lose money, the price you pay for the product is the same.
iThink Logistics offers you a variety of delivery partners. You can choose any one that suits your needs, then pack the item, and the delivery executive will come and pick it up from you. The customer pays cash for the product after the delivery. This payment will be credited into your account within a certain time.
In general, the shipping partner makes three attempts to deliver the parcel to the customer. The package will be returned to the seller if the delivery is not possible after three attempts.
If you are a brand new business, and your company does not yet have a good reputation with customers, offering COD as a payment option can increase their confidence. This reduces fraud involving debit/credit cards and buyer identities.
Why is COD so popular in India
Cash-on-delivery option boosts ecommerce in India. Cash on delivery is popular with young customers, who don’t have credit cards or other payment methods.
Cash on Delivery is another payment method you can offer to your clients. You don’t have to worry as a seller about COD procedures. COD actually increases traffic to your website, and gives customers a feeling of security.