Should you introduce Cash-on -delivery to your business? 

In the world of eCommerce, you can provide your customers with two payment options; cash on delivery or cash before delivery. 

Cash on delivery is a mode of payment that allows customers to order your product online, but they are not obligated to send any payment till they receive the product. In cash-before-delivery, the customers pay for the product before the shipping process starts. This article deals with providing information on cash-on delivery and the impact it can have on your business. 

One major reason that business owners refrain from offering the cash-on-delivery option is the lack of trust in their customers. However much we value our customers, there are always those who are untrustworthy. These customers will have you shipping orders only to give excuses for not completing the payment. The amount of time you took to prepare, package, and get the product ready for delivery would all go to waste. Additionally, you might probably be the one paying for the delivery charges. This will be a loss to the business.  

However, did you know that cash-on-delivery may be the missing piece to your business’ success? Don’t you think customers prefer to pay for a product they have at hand than pay for something they have not seen? 

The following article will show you the pros and cons of the cash-on-delivery payment option and if the practice will be beneficial to your business. 

Why offer Cash on delivery 

COD is both beneficial to your customers and business. These are the advantages of offering the cash-on-delivery option to your customers: 

  • Provides a wider market 

When you evaluate your site analytics you will notice that most customers add products to their carts but fail to complete the purchase. Ever wondered what happened? The truth is that customers require security. Put yourself in their shoes; You are paying for a product that you have not received from a stranger on the internet. A customer may also be willing to purchase your product but are afraid of exposing their personal information such as card number or email address. Offering cash-on-delivery will convince skeptical customers to purchase your products which provides more sales compared to just offering cash before delivery. 

  • Flexible payment option for the customer  

When customers receive the products, they can decide how they would like to pay for the items. Have you ever tried paying for a product, but the site could not accept your card brand, or the site only offers payment processing options that you do not have e.g., PayPal? Cash on delivery can give your customers an additional payment option such as cash. However, you must choose a trustworthy logistics partner to ensure the proper handling of the money. 

  • Customer loyalty  

Your customers will be assured that your company values fulfillment of orders than just receiving payments. Cash on delivery favours customers and as a business owner, you may be on the losing end if a customer fails to pay for the product. Customers are always aware of this fact and putting their assurance and need first will build a stronger bond between you two.  

The downside of cash-on-delivery 

Cash on delivery will boost your sales as customers appreciate the benefits it provides for them. However, you might face some of these challenges when offering the cash-on-delivery payment option.  

  • Customers may reject the product 

Cash on delivery does not guarantee a complete sale. A customer may receive the product and decide to return it before making a payment. The customer can even give an excuse such as “I do not find the need of your product anymore”. This is after getting your hopes up on fulfilling an order. Frustrating, right? 

  • Delayed payments 

You are a business owner; you get an order, and you must deliver it hundreds of miles away. The customer requests to pay on delivery. The delivery ends up taking a week to get to the customer. This means that you will be receiving the payment a week after dispatching the product.  

Is COD safe for business? 

Cash on Delivery has its pros and cons. You make your customer happy by giving them a flexible payment option, but you risk purchase guarantee and on-time payments. However, there is nothing better than the satisfaction of your customers’ needs. Implementing this payment option is not difficult. All you will need is a reliable logistics partner whom you can trust to handle the cash. 

At ibuQa, we deliver reliable logistics services and if you provide your customers with the cash-on-delivery option, we ensure proper handling of the cash and go to the extent of depositing the money to your preferred bank and sending you the necessary statements. 

So, when you are ready to introduce the cash-on-delivery payment option let us help you deliver your products and take proper care of your cash. You can reach us at +254 743 750 000 or email us at 

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